In re Exide Technologies
United States Bankruptcy Court for the District of Delaware
303 B.R. 48 (2003)
- Written by Carolyn Strutton, JD
Facts
Exide Technologies (Exide) (debtor) was a battery manufacturer. Exide filed for reorganization under chapter 11 of the bankruptcy code. Exide wanted to confirm its reorganization plan over the objection of several parties, including the committee of unsecured creditors. Both Exide and the creditors’ committee offered valuations of the company to the court. The parties used the same valuation methods. However, because of differing assumptions and data inputs, the parties’ valuations were significantly different. Exide had made adjustments that attempted to reflect current market value, while the creditors’ committee had followed a more straightforward approach. Exide claimed the value was between $950 million and $1 billion, and the committee claimed the value was between $1.4 billion and $1.7 billion. The creditors’ committee argued that Exide undervalued the company with its calculations, and that the plan would pay certain creditors more than the full value of their claims at the unsecured creditors’ expense. Likewise, Exide claimed that the creditors’ committee had overvalued the company and that the plan was fair.
Rule of Law
Issue
Holding and Reasoning (Carey, J.)
What to do next…
Here's why 804,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
