Rayovac battery maker files Chapter 11

NEW YORK (AP) — Spectrum Brands Inc., the maker of Rayovac batteries and Remington shavers, filed for Chapter 11 bankruptcy protection Tuesday under a heavy debt load.

The Atlanta-based company filed for court protection after it missed a $25.8 million interest payment Monday.

Spectrum reported $4.44 billion in debt and $10.07 billion in assets in its filing. The debt figure could include pension obligations, the company said. Spectrum said in its press release that it has $2.6 billion in outstanding loans.

The company filed a pre-negotiated bankruptcy plan, under which current shareholders will get wiped out. If the plan is approved, Spectrum would issue new shares and other creditors would maintain their standing.

The filing, made in U.S. Bankruptcy Court for the Western District of Texas in San Antonio, does not affect its operations outside the U.S.

Spectrum said it had reduced the amount of debt on its balance sheet by about a third, or about $840 million. It also said it had eliminated $95 million in interest payments for the next two years and freed up additional cash.

Its most recent quarterly results from November show that it lost $492.6 million for the quarter ended Sept. 30. It also announced then that it would sell its fertilizer business to save money.