The market for Exide Technologies' bank debt drooped last week, falling from the mid-to high 50s into the 40s as the battery maker continues to work its way through bankruptcy. Traders said that paper did not change hands. Market players said that they were worried that the company would not be able to continue to stay current with the interest rate on its bank debt. In response, an Exide spokesman said, "The company is meeting and exceeding its business plan and our liquidity position is solid." He declined to specifically comment on the interest rate.
There was a bank group steering committee meeting last Thursday. The subject of that meeting could not be determined, but the levels on the bank debt continued to decline after it was held. Exide's bank debt also received a low rating in the Shared National Credit exam and bank holders will have to write-down the credit, noted one trader.