Lead acid batteries maker Exide Technologies filed for Chapter 11 bankruptcy this week to expedite the sale of its North America assets.
The company indicated it was already in talks with several prospective buyers to sell its North America operations, and that it plans to sell Asian and European businesses separately.
In a news release, the Milton, Georgia-based batteries maker said it would work with the relevant federal and state authorities to ensure the smooth sale and transfer of its properties, which include its non-operational ones like the former recycling facility in Vernon, California.
The company said these steps became necessary after the company’s liquidity deteriorated because of COVID-19 related shutdowns across the world. The current steps, according to Tim Vargo, chairman, president, and chief executive officer of Exide, would position the company’s remaining global businesses “for future growth and profitability.”
Exide’s current US operations consist of a plastics recycling facility in Reading, Pennsylvania, and two lead acid batteries recycling facilities in Muncie, Indiana and Canon Hollow, Missouri.
This is the second bankruptcy procedure recently announced by a lead acid batteries maker. Last week, Recyclex announced that its German lead recycling plant, along with four other recycling facilities, was filing for bankruptcy because of mounting losses. While domestic batteries scrap supply and demand hasn’t been impacted, lead scrap prices have declined because of these filings.