Update on Investment in Exide Technologies

RNS Number : 8377N

NB Distressed Debt Invest. Fd. Ltd

26 May 2020

 

26 May 2020

NB Distressed Debt Investment Fund Limited

("NBDD" or the "Company")

Update on Investment in Exide Technologies

The Board of NBDD has been notified of a reduction in the valuation of the Company's holding of securities in its Auto Component investment, Exide Technologies ("Exide").

Exide filed for protection under Chapter 11 of the US Bankruptcy Code on 19 May 2020 as a result of the global economic downturn caused by the Covid-19 pandemic. Along with the bankruptcy filing, Exide announced plans to sell its Americas assets and its Europe/Rest of World assets in separate processes, with each expected to be completed by September 2020.

Prior to the Covid-19 pandemic and related economic downturn, Exide was progressing on its long-term turnaround plan and NBDD expected to monetize its investment by the end of 2021. The Investment Manager expects that the proceeds from asset sales in Chapter 11 will be materially lower than its estimate of 2021 exit proceeds prior to the bankruptcy filing. Based on this analysis, and following Exide's first-day bankruptcy hearing, it was able to carry out an update of the valuations for the Exide securities. New valuations have now been approved by the Investment Manager's Valuation Committee. NBDD's holdings include private secured notes and private equity. 

The impact to each share class is as follows:

NBDD Share Class	Mark to Market Loss	Decline in reported NAV*
Ordinary	$0.7 million	6.0%
Extended	$6.8 million	8.6%
Global	£2.9 million	6.9%

* As a percentage of 20 May 2020 NAV (announced on 21 May 2020)

These updated valuations will be incorporated into the NAV announced for close of business on Friday 22 May, to be reported later today.

- ENDS -

LEI:  YRFO7WKOU3V511VFX790

For further information, please contact:

KL Communications Charles Gorman	[phone] [e-mail]
Stifel Nicolaus Europe Limited Mark Bloomfield	[phone]

 

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