Exide Holdings Inc. got court approval of its bankruptcy plan, allowing the battery manufacturer to sell its overseas assets and avoid paying for a full cleanup of a former recycling facility in California over the state’s objections, Bloomberg Law reported. The plan, which was amended four times before it was approved on Friday, incorporates a global settlement Exide reached with its creditors, purchasers of the overseas assets, the U.S. Environmental Protection Agency, and ten state environmental agencies. California’s was the only environmental agency that rejected the settlement agreement. California Gov. Gavin Newsom (D) called the plan approval “dangerous” and said that the state would appeal it. The chapter 11 plan allows Exide to sell its European and overseas assets to a group of existing lenders in a $559 million credit bid, preserving 5,000 jobs. The company also will wind down its involvement at former sites in the U.S. that still need environmental remediation. After filing for bankruptcy in May, it sold its North American business operations to an affiliate of Atlas Holdings LLC for $178.6 million. The settlement incorporated into the plan creates a $10 million multi-state environmental trust that would manage future environmental cleanup at former Exide sites. California would receive $2.6 million for a former battery recycling facility in Vernon, Calif., if the state signs onto the agreement.
