Exide Technologies received a stalking horse bid of $170mn from EX Holdings for its Americas business, which is currently under Chapter 11 bankruptcy in the US.
The bid from EX Holdings, a subsidiary of Quexco, was chosen from other bids received by the batteries maker during its marketing campaign to sell the company’s assets, according to Tim Vargo, chairman, president, and chief executive officer of Exide.
Under the stalking horse bid (an initial offer for the assets of a bankrupt company) Exide will sell a substantial part of its business to EX Holdings on the assumption that the bidder will also take on the company’s liabilities related to some of its assets. Moreover, the company’s 23 non-operating assets in North America are excluded from this agreement, Exide indicated in a statement on July 8.
The Milton, Georgia-based company’s North American assets are currently subject to Section 363 under the US Bankruptcy Code, meaning the Bankruptcy Court must approve the agreement, which can also be challenged to higher and better offers, the company noted.
Moreover, EX Holdings intends to retain the battery maker’s North American workforce and support its operations after the acquisition is completed. The announcement comes on the heels of Exide’s recent sale of its Europe Middle East and Africa (EMEA) and the Asia Pacific business to a group of its noteholders.
Exide filed for Chapter 11 bankruptcy two months ago to expedite the sale of its North American assets.