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Exide announces interim court approval for $500M DIP financing

Exide Technologies announced that it has received U.S. Court approval of a variety of motions that will support the company's operations as it proceeds with its restructuring, including interim approval of its $500M Debtor-in-Possession financing agreement with JP Morgan Chase designed to facilitate and ensure the continued uninterrupted operation of Exide's global business. The company was authorized to access up to $395M of the DIP Financing Facility – the full $225M of the ABL revolving credit facility and $170M of the $275M term loan facility. It is contemplated that certain of the current holders of the company's 8.625% Senior Secured Notes due February 1, 2018 will become lenders under the DIP Financing Facility. The company's current asset based lending facility with outstanding obligations of approximately $160M will be paid off in full as a part of the new funding. The DIP financing and cash generated from operations will be used to support the company's global operations during the course of these proceedings. A hearing to consider final approval of the DIP financing is scheduled on July 11, the company said.