Exide Tumbles 48% as Debtwire Reports Restructuring PlanNiamh Ring
Exide Technologies, a maker of lead-acid batteries, dropped the most in almost nine years after Debtwire reported that it hired Lazard Ltd. and Akin Gump Strauss Hauer & Feld LLP to advise on a restructuring.
Exide sank 48 percent to $1.37 at the close in New York for the biggest one-day decline since April 21, 2004. The Milton, Georgia-based company has tumbled 60 percent this year.
The company confirmed in a statement today after the close that it had hired the Lazard investment bank. Exide initially engaged Deutsche Bank AG last year to lead a global refinancing, Debtwire said. Management is now considering restructuring alternatives amid capital issues and a looming September maturity on its convertible notes, the news service said, citing sources it didn’t identify.
The company had cash and cash equivalents of $80 million as of Dec. 31, according to its most recent earnings report.