Horsehead second amended plan of reorganization confirmed by court

By Caroline Salls

Pittsburgh, Sept. 9 – Horsehead Holding Corp.’s second amended plan of reorganization was confirmed Friday by the U.S. Bankruptcy Court for the District of Delaware.

Treatment of creditors will include the following:

• Administrative claims, debtor-in-possession facility claims, Macquarie credit agreement claims and other priority claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash, have their claims reinstated or receive the company’s interest in the collateral securing the claim;

• Holders of secured notes claims will receive a share of 93.29% of the new common equity in the reorganized company;

• Holders of unsecured notes claims will receive a 6.71% share of the new common equity;

• Holders of convertible notes claims will receive a share of warrants to be issued under the plan;

• Holders of Banco Bilbao credit agreement claims will receive a share of a Banco Bilbao note;

• Zochem general unsecured claims will be reinstated, and holders will be paid in full within 45 days of the plan effective date;

• Holders of other general unsecured claims will receive a share of $11.88 million in cash;

• Holders of existing interests and section 510(b) claims will receive no distribution; and

• Intercompany claims and intercompany interests will either be reinstated or canceled without distribution, at the option of the reorganized company.

Pittsburgh-based Horsehead Holding is the parent company of Horsehead Corp., a U.S. producer of specialty zinc and zinc-based products and a recycler of electric arc furnace dust. The company filed bankruptcy on Feb. 2, 2016 under Chapter 11 case number 16-10287.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.