|
|
 | | | |
- close
- close
- close
- close
| |||||||||
This excerpt taken from the XIDE 10-K filed Jun 11, 2007. Emergence
from Chapter 11 Bankruptcy Protection
On April 15, 2002, Exide Technologies, together with
certain of its U.S. subsidiaries, filed voluntary petitions
for reorganization under Chapter 11 of the federal
bankruptcy laws (“Bankruptcy Code” or
“Chapter 11”) in the United States Bankruptcy
Court for the District of Delaware (“Bankruptcy
Court”). On November 21, 2002, two additional
wholly-owned, non-operating subsidiaries of Exide filed
voluntary petitions for reorganization under Chapter 11 of
the Bankruptcy Code in the Bankruptcy Court. All of the cases
were jointly administered for procedural purposes before the
Bankruptcy Court under case number
02-11125KJC.
Exide Technologies and such subsidiaries (the
“Debtors”) continued to operate their businesses and
manage their properties as
debtors-in-possession
throughout the course of the bankruptcy case. The Debtors, along
with the Official Committee of Unsecured Creditors, filed a
Joint Plan of Reorganization (the “Plan”) with the
Bankruptcy Court on February 27, 2004 and, on
April 21, 2004, the Bankruptcy Court confirmed the Plan.
The Debtors declared May 5, 2004 as the effective date of
the Plan, and substantially consummated the transactions
provided for in the Plan on such date (the “Effective
Date”).
The following is a summary of certain transactions which became
effective on the Effective Date pursuant to consummation of the
Plan.
As claims are evaluated and processed, the Company will object
to some claims or portions thereof, and upward adjustments (to
the extent stock and Warrants not previously distributed remain)
or downward adjustments to the reserve will be made pending or
following adjudication of such objections. Predictions regarding
the allowance and classification of claims are inherently
difficult to make. With respect to environmental claims in
particular, there is an inherent difficulty in assessing the
Company’s potential liability due to the large number of
other potentially responsible parties. For example, a demand for
the total cleanup costs of a landfill used by many entities may
be asserted by the government using joint and several liability
theories. Although the Company believes that there is a
Table of Contents
reasonable basis to believe that it will ultimately be
responsible for only its share of these remediation costs, there
can be no assurance that the Company will prevail on these
claims. In addition, the scope of remedial costs or other
environmental injuries are highly variable and estimating these
costs involves complex legal, scientific and technical
judgments. Many of the claimants who have filed disputed claims,
particularly environmental and personal injury claims produce
little or no proof of fault on which the Company can assess its
potential liability. Such claimants often either fail to specify
a determinate amount of damages or provide little or no basis
for the alleged damages. In some cases, the Company is still
seeking additional information needed for a claims assessment
and information that is unknown to the Company at the current
time may significantly affect the Company’s assessment
regarding the adequacy of the reserve amounts in the future.
As general unsecured claims have been allowed in the bankruptcy
court, the Company has distributed approximately one share of
the Company’s common stock per $383.00 in allowed claim
amount and approximately one Warrant per $153.00 in allowed
claim amount. These rates were established based upon the
assumption that the common stock and Warrants allocated to
holders of general unsecured claims on the effective date of the
Plan, including the reserve established for disputed claims,
would be fully distributed so that the recovery rates for all
allowed unsecured claims would comply with the Plan without the
need for any redistribution or supplemental issuance of
securities. If the amount of general unsecured claims that is
eventually allowed exceeds the amount of claims anticipated in
the setting of the reserve, additional common stock and Warrants
will be issued for the excess claim amounts at the same rates as
used for the other general unsecured claims. If this were to
occur, additional common stock would also be issued to the
holders of pre-petition secured claims to maintain the ratio of
their distribution in common stock at nine times the amount of
common stock distributed for all unsecured claims.
This excerpt taken from the XIDE 10-K filed Jun 29, 2005. Emergence from Chapter 11 Bankruptcy Protection
On April 15, 2002, Exide Technologies, together with certain of its U.S. subsidiaries, filed voluntary petitions for reorganization under Chapter 11 of the federal bankruptcy laws (“Bankruptcy Code” or “Chapter 11”) in the United States Bankruptcy Court for the District of Delaware (“Bankruptcy Court”). On November 21, 2002, two additional wholly owned, non-operating subsidiaries of Exide filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. All of the cases were jointly administered for procedural purposes before the Bankruptcy Court under case number 02-11125KJC.
Exide Technologies and such subsidiaries (the “Debtors”) continued to operate their businesses and manage their properties as debtors-in-possession throughout the course of the bankruptcy case. The Debtors, along with the Official Committee of Unsecured Creditors, filed a Joint Plan of Reorganization (the “Plan”) with the Bankruptcy Court on February 27, 2004 and, on April 21, 2004, the Bankruptcy Court confirmed the Plan. The Debtors declared May 5, 2004 as the effective date of the Plan, and substantially consummated the transactions provided for in the Plan on such date (the “Effective Date”).
The following is a summary of certain transactions which became effective on the Effective Date pursuant to consummation of the Plan. This summary is qualified in its entirety by the full text of the Plan, as well as technical amendments to the Plan, which were filed as Exhibits 2.1 and 2.2 to the Report on Form 8-K filed on May 6, 2004.
Under the claims reconciliation and allowance process set forth in the Plan, the Official Committee of Unsecured Creditors, in consultation with the Company, established the reserve to provide for a pro rata distribution to holders of disputed claims as they become allowed. Although predictions regarding the allowance and classification of claims are inherently difficult to make, based on the Company’s review to date of the available information, the Company believes the reserve is reasonable and adequate. To the extent the reserved shares of new common stock and Warrants are insufficient to provide such payment, the Company may issue additional shares of new common stock and Warrants. In that event, the Company will also issue shares of new common stock to the holders of pre-petition credit facility claims sufficient to preserve the relative value of their recoveries under the terms of the Plan.
13
Table of Contents
| EXCERPTS ON THIS PAGE:
RELATED TOPICS for XIDE: |
| |||||||
