Lead-acid and lithium-ion battery recycler Exide Technologies (Milton, Ga.) has filed for Chapter 11 bankruptcy.
The company says the move is a result of “legacy debt” burdens from its prior Chapter 11 filing in June 2013, environmental cleanup costs of up to $200 million in the next five years, and the effects of the COVID-19 pandemic, according to Law360, which reviewed the case-opening declaration.
Exide has separately reached an agreement to sell its Europe-Middle East-Africa and Asia-Pacific businesses, where its revenue and market share have been growing, it says. To support its ongoing operations in North America while it undergoes its sale and restructuring, Exide says a group of lenders has committed debtor-in-possession financing of $40 million. Exide has filed motions to continue paying employees and manufacturing and delivering products without interruption.
Exide’s goal is to auction its American operations by Aug. 7, Law360 says, and to liquidate or abandon 23 “non-performing” pollution cleanup sites. Exide has begun talks with regulatory agencies regarding future cleanup obligations, it adds, including for 16 sites in the United States and Canada “that could require costly, long-term attention.” Visit exide.com/en/2020-restructuring