Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Horsehead Holding Plan Effective

Horsehead Holding's Second Amended Joint Plan of Reorganization with technical modifications became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on September 9, 2016. Horsehead Holding's Plan eliminates substantially all of the Company's debt and converts approximately $205 million of senior secured debt into equity in the reorganized Company. The Plan also, among other things, provides for the repayment of its debtor-in-possession credit facility; provides for repayment in full of creditors at Zochem (its Canadian subsidiary) and provides for distributions of cash, equity and warrants for its other prepetition creditors. Additionally, Horsehead Holding's new equity owners have committed to fund additional equity capital to support the repair and restart of the Company's zinc production facility located in Mooresboro, NC, subject to certain terms and conditions--including the approval of Horsehead Holding's board of directors. James M. Hensler, C.E.O. of Horsehead Holding, states, "…[W]e have emerged from bankruptcy with a capital structure free of long-term debt. With the bankruptcy process behind us, we can now turn our full attention to our operations and strategic plans, including finalizing the plans to repair and restart our Mooresboro, North Carolina facility to provide high quality zinc to the North American market." Upon emergence, the Company changed its name from Horsehead Holding Corp. to Horsehead Holding LLC. This zinc and nickel-based products' producer filed for Chapter 11 protection on February 2, 2016, listing $974 million in pre-petition assets.

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