Horsehead committee’s loan milestone extension motion denied by court

By Caroline Salls

Pittsburgh, April 6 – A request by Horsehead Holding Corp.’s official committee of unsecured creditors to extend case milestones established in the company’s debtor-in-possession financing order by 30 days was denied Wednesday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the committee said the company’s business plan, alternate operating scenario and revised plan term sheet were not shared with the committee in a timely fashion.

“It has become apparent that the April 6, 2016 DIP milestone deadline to file an acceptable plan and disclosure statement is artificial,” the committee said in its motion.

“This deadline does not provide the committee sufficient time to complete its diligence of the business plan, the alternate operating scenario and its valuation analysis, which are prerequisites to responding to the term sheet.”

The committee said more time is needed for plan negotiations, and cash is available to Horsehead under a revised budget for at least a 30-day extension to the DIP milestones.

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 under Chapter 11 case number 16-10287.

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