Pittsburgh, Pennsylvania – Horsehead Holding LLC, the parent of zinc oxide producer Zochem Inc., said it has emerged from Chapter 11 bankruptcy protection after its reorganisation plan was confirmed by the US Bankruptcy Court for the District of Delaware.
Horsehead said in a statement that the plan eliminates substantially all of the company’s debt; converts about $205 million (€184 million) of senior secured debt into equity in the reorganised firm; 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 distribution of cash, equity and warrants for its other prepetition creditors.
The company’s new owners also have committed to fund additional equity to support the repair and restart of Horsehead’s zinc production facility in Mooresboro, North Carolina, according to statement. Horsehead also converted from a Delaware-held corporation to a limited liability company. The names and structures of its major operating subsidiaries, including Zochem, remain unchanged.
“With the bankruptcy process behind us, we can now turn our full attention to our operations and strategic plans,” Horsehead CEO James Hensler said in the statement.
When the Chapter 11 petition was filed earlier this year, Zochem General Manager Joshua Belczyk said the zinc oxide subsidiary was financially stable. He said it had been operated as a stand-alone entity and was included in the bankruptcy filing because it could provide support and collateral for the investors looking to provide interim, debtor-in-possession financing.