Horsehead third DIP loan amendment updates plan-related milestones

By Caroline Salls

Pittsburgh, June 27 – Horsehead Holding Corp. entered into a third amendment and waiver in connection with its debtor-in-possession credit agreement, and Horsehead Zinc Recycling, LLC repaid in full $878,017 owed on loan agreements, according to an 8-K filed Monday with the Securities and Exchange Commission.

The company said the amendment required its Horsehead Zinc Recycling subsidiary to become a debtor and a party to the DIP credit agreement at the request of the administrative agent or lenders after payment in full of the outstanding borrowings under the loan agreements.

Also under the amendment, the DIP lenders waived some events of default, including the debtors’ failure to meet specified milestones.

The milestones were updated to require Horsehead to obtain court approval of the disclosure statement for its plan of reorganization by July 7, obtain recognition by the Ontario Superior Court of Justice of the disclosure statement order by July 12, obtain confirmation of the plan by Aug. 31 and obtain recognition of the confirmation order by Sept. 3.

The amendment requires the plan to take effect by Sept. 19.

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 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 16-10287.

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