MILTON, Ga., April 1, 2011 (GLOBE NEWSWIRE) -- Exide Technologies (Nasdaq:XIDE) (www.exide.com) and the United States government have reached an agreement, contingent on federal bankruptcy court approval, to settle the U.S. government's proofs of claim filed on behalf of the Environmental Protection Agency and the National Oceanic and Atmospheric Administration in the Company's 2002 bankruptcy matter. The United States will be allowed a total general unsecured, non-priority P4-A claim of approximately $67.6 million, distribution of which will be made solely in Exide stock.
As general unsecured claims have been allowed in the Bankruptcy Court, the Company has distributed approximately one share of common stock for every $383.00 in allowed claim amount. A reserve of common stock was set aside upon the Company's emergence from bankruptcy to resolve various bankruptcy claims, including those of the U.S. government. This will therefore cause no further dilution to the company's issued and outstanding common stock.
"We believe that the terms and conditions of the settlement are favorable to, and in our best interests," said Phil Damaska, Executive Vice President and Chief Financial Officer, Exide Technologies. "This settlement will not have any impact on the Company's liquidity or cash flow."
About Exide Technologies
Exide Technologies, with operations in more than 80 countries, is one of the world's largest producers and recyclers of lead-acid batteries. The Company's four global business groups -- Transportation Americas, Transportation Europe and Rest of World, Industrial Energy Americas and Industrial Energy Europe and Rest of World -- provide a comprehensive range of stored electrical energy products and services for industrial and transportation applications.
Transportation markets include original-equipment and aftermarket automotive, heavy-duty truck, agricultural and marine applications, and new technologies for hybrid vehicles and automotive applications. Industrial markets include network power applications such as telecommunications systems, electric utilities, railroads, photovoltaic (solar-power related) and uninterruptible power supply (UPS), and motive-power applications including lift trucks, mining and other commercial vehicles.
Further information about Exide, including its financial results, are available at www.exide.com.
The Exide Technologies logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5067