September 30, 2016
Emergence from Bankruptcy
PITTSBURGH, September 30, 2016 -- HORSEHEAD HOLDING LLC, together with certain of its subsidiaries (collectively, “Horsehead” or the “Company”) announced today that it has emerged from chapter 11 as a private company after successfully consummating its plan of reorganization (the “Plan”), which was confirmed by the United States Bankruptcy Court for the District of Delaware on September 9, 2016.
Horsehead’s Plan eliminates substantially all of the Company’s debt, converts approximately $205 million of senior secured debt into equity in the reorganized Company and, among other things, provides for the repayment of its debtor-in-possession credit facility, provides for repayment, in full, of creditors at Zochem Inc. (“Zochem”), its Canadian subsidiary, and provides for distributions of cash , equity and warrants for its other prepetition creditors, in each case, as set forth more fully in the Plan. Additionally, Horsehead’s new equity owners have committed to fund additional equity capital to support the repair and restart of Horsehead’s zinc production facility located in Mooresboro, North Carolina, subject to certain terms and conditions, including the approval of Horsehead’s board of directors. Under the Plan, Horsehead also converted its corporate form from a Delaware corporation to a Delaware limited liability company, and its name was changed from “Horsehead Holding Corp.” to “Horsehead Holding LLC” (“Horsehead Holding”). The names and structures of Horsehead’s major operating subsidiaries: Horsehead Corporation; Horsehead Metal Products, LLC; The International Metals Reclamation Company, LLC (“INMETCO”); and Zochem remain unchanged.
James M. Hensler, Chief Executive Office of Horsehead, stated “I’m pleased to announce that our plan of reorganization, which was confirmed by the U.S. Bankruptcy court on September 9, 2016, became effective today and we have emerged from bankruptcy with a capital structure free of long-term debt.”
Hensler added: “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.”
Horsehead Holding is the parent company of Horsehead Corporation, a leading U.S. producer of specialty zinc and zinc-based products and a leading recycler of electric arc furnace dust; INMETCO, a leading recycler of metals-bearing wastes and a leading processor of nickel-cadmium (NiCd) batteries in North America; and Zochem, a zinc oxide producer located in Brampton, Ontario. Horsehead, headquartered in Pittsburgh, Pa., employs approximately 700 people and has seven facilities throughout the U.S. and Canada. Visit http://www.horsehead.net for more information.
Lazard Middle Market LLC and RAS Management Advisors, LLC served as investment bankers and financial advisors, respectively, to the Company, and Kirkland & Ellis LLP, Aird & Berlis LLP, and Pachulski Stang Ziehl & Jones LLP served as legal counsel to the Company.
Moelis & Company LLC served as financial advisor and investment banker to the Plan Sponsors, and Akin Gump Strauss Hauer & Feld, LLP, Ashby & Geddes, P.A., and Cassels Brock & Blackwell LLP served as legal counsel to the Plan Sponsors.