MILTON, Ga. – The U.S. Bankruptcy Court for the District of Delaware has approved the adequacy of Exide Technologies’ disclosure statement for its Plan of Reorganization (“POR”). With the Court’s authorization, Exide can now begin the process of soliciting approval of the POR. The hearing to confirm the POR is scheduled for March 27, 2015.

The POR, which is supported by two of the company’s principal creditor constituencies – the official committee of unsecured creditors (the “UCC”) and certain members of the unofficial committee of senior secured noteholders (the “UNC”) ­– contemplates significant improvement to the company’s balance sheet by, among other things, de-leveraging the company by approximately $600 million.

The Bankruptcy Court also approved the related Second Amended Plan Support Agreement, Backstop Commitment Agreement, Rights Offering Procedures, and a tripartite global settlement agreement entered into with the UCC and certain members of the UNC. Under the Settlement Agreement, the UCC agreed, among other things, to affirmatively support confirmation of the POR. As previously announced, the Exide Second Amended Plan Support Agreement provides the company with support for its POR from holders of a majority of the principal amount of Exide’s senior secured notes. Moreover, certain of those holders, through the Backstop Commitment Agreement, have committed to backstop up to $160 million of second lien convertible notes to be offered pursuant to a $175 million rights offering.

“This is a significant and meaningful step forward on the company’s path toward a consensual plan confirmation process and intended emergence from Chapter 11 by March 31, 2015,” said Robert Caruso, president and CEO of Exide Technologies. “I thank our customers and suppliers for standing by us during the Chapter 11 process and acknowledge our employees for their hard work as we focus on the completion of our restructuring and begin a new era for Exide as a better capitalized company positioned for growth.”