Reuters reported that American zinc miner Horsehead Holding Corp. (NASDAQ:ZINC) has filed for Chapter 11 bankruptcy. The company cited poor metals prices and a shortage of cash as reasons for its troubles.
As quoted in the market news:
Horsehead’s filing came weeks after it said it was idling its state-of-the-art zinc production facility in Mooresboro, North Carolina, which it broke ground on in 2011. The company blamed a lack of liquidity and a seven-year low in the price of zinc.
Horsehead and its affiliates have been in the zinc industry for more than 150 years, and also recycle nickel-bearing waste and nickel-cadmium batteries. The company operates six US facilities and one in Canada.
In January, Horsehead missed a $1.9-million interest payment on its secured notes due in 2017.
The company said it will seek court permission to borrow up to $90-million from holders of the secured notes. Horsehead said it urgently needs cash as a number of significant vendors and suppliers have cut off or have threatened to cut the company off due to its dwindling funds.
The loan will commit Horsehead to produce a plan of reorganisation in 40 days that is acceptable to its lenders and a group of secured noteholders, according to court documents.