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Case Summary: Exide Technologies Bankruptcy Settlement
In May 2011, Exide Technologies agreed to resolve its environmental liabilities with the U.S. Environmental Protection Agency (EPA) and the National Oceanic and Atmospheric Administration (NOAA) related to 21 sites across the country. In addition, the agreement, approved by the United States Bankruptcy Court for the District of Delaware, also contains an additional sites provision, which provides a framework for addressing Exide's future liability pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA, commonly referred to as Superfund) and the Resource Conservation and Recovery Act (RCRA).
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Exide Technologies, headquartered in Georgia, is one of the world's largest producers, distributors and recyclers of lead-acid batteries with 80 locations around the world. Exide has been in the battery business for over 120 years.
On April 15, 2002, Exide and several related companies filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware. On November 21, 2002, Refined Metals Corporation (Refined Metals), a wholly-owned subsidiary of Exide, also filed a bankruptcy petition under Chapter 11 in the United States Bankruptcy Court for the District of Delaware. The Bankruptcy Court consolidated the cases for administrative purposes on November 29, 2002. The United States filed proofs of claim (POC) on behalf of EPA and NOAA in April 2003. The POC was for response costs and natural resource damages in relation to 18 Superfund Sites. In addition, the United States filed claims to protect rights to injunctive and regulatory requirements for ongoing cleanup work at several sites.
The Settlement Agreement provides for resolution of the POCs filed on behalf of EPA and NOAA for 23 sites. EPA received an allowed general unsecured claim of $61,448,278 for past and future response costs in connection with 21 sites and NOAA received an allowed general unsecured claim in the amount of $6,151,400 for natural resource damages at two sites. Distributions pursuant to the Settlement Agreement and in accordance with Exide's confirmed Plan of Reorganization will be in shares of Debtor's stock.
In addition, the Settlement Agreement requires Exide to continue to comply with seven cleanup work consent decrees and three cleanup work orders. The Settlement Agreement also provides a framework for resolving contamination at sites that may not have been discovered at the time of settlement in the form of an additional sites provision. If contamination is later discovered at a site, after EPA and Exide reach an agreement as to the amount of the claim, EPA will receive payment for 15 percent of the agreed upon claim amount.
For more information, contact:
U.S. Environmental Protection Agency
1200 Pennsylvania Avenue, NW
Washington, D.C. 20460