The bank debt for bankrupt Exide Technologies rallied from the 841/2-851/2 range into the 86-87 context early last week. The name softened later in the week though, with the overall tone of the market. Exide's bank debt moved out of the 70s range after the company announced that it had reached a new consensual plan of reorganization with its creditors. The bankruptcy court judge denied the confirmation of an earlier plan (LMW, 1/12).
Under the new plan, lenders are slated to receive about 90% of the equity. It is an interesting play in a cyclical company, said one buysider, noting that the company will not emerge with too much leverage. No official plan of reorganization has been filed with the court. But the company is apparently on a fast track for emergence. An Exide spokesman said the intention is to have a plan of reorganization confirmed by March.