Horsehead Holding DIP credit agreement amended, milestones extended

By Caroline Salls

Pittsburgh, May 18 – Horsehead Holding Corp. and some of its direct and indirect wholly owned subsidiaries entered into a second amendment of the debtor-in-possession credit agreement with administrative agent Cantor Fitzgerald Securities, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Under the amendment, the DIP lenders waived events of default related to Horsehead’s failure to meet milestones and Zochem Inc.’s failure to comply with a minimum required EBITDA-R covenant.

The amendment also updated the company’s Chapter 11 case milestones so that Horsehead’s disclosure statement must be approved by the U.S. Bankruptcy Court for the District of Delaware by June 3 and by the Ontario Superior Court of Justice by June 6 and the plan must be confirmed by the bankruptcy court by July 13 and the Canadian court by July 15.

In addition, Zochem’s minimum required EBITDA-R requirement was reduced under the amendment.

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 for bankruptcy on Feb. 2 under Chapter 11 case number 16-10287.

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