PRODUCER NEWS - Zinc producer Horsehead files for bankruptcy

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Tom Jennemanntom.jennemann@fastmarkets.comSenior North American Correspondent973-204-3383

Winter Park, Florida 02/02/2016 - Horsehead Holding Corp. has filed for Chapter 11 bankruptcy and will seek $90 million in financing from its debt holders to pay venders and suppliers.

Last month, US-based zinc producer missed a $1.9 million interest payment on its secured notes due in 2017 and temporarily idled its Mooresboro, North Carolina, zinc production facility to conserve cash amid low zinc prices.

The Mooresboro plant opened in the first quarter of 2014. The facility has the ability to produce 155,000 short tons per year of Prime Western (PW), Special High Grade (SHG) and Continuous Galvanizing Grade (CGG) zinc products.

The company also owns a zinc powder facility in Palmerton, Pennsylvania, and four recycling facilities located in Barnwell, South Carolina, Calumet, Illinois, Rockwood, Tennessee and Palmerton, Pennsylvania. These operations will remain operating through the restructuring.

"Filing for Chapter 11 protection is the best available option to preserve stakeholder value. We intend to emerge with increased financial flexibility and a capital structure that will enable us to invest in growing our business," Jim Hensler, President and CEO, said.

If the court approves the emergency loan, the company will be required to submit an official plan of reorganization in 40 days, according to court documents.

Horsehead has assets were worth $1 billion and its liabilities were worth $545 million as of September 30, the documents added. 



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