Horsehead Holding was cleared to exit bankruptcy on Friday although a US judge acknowledged that allegations by the zinc producer’s shareholders that their investment was being unfairly wiped out came very close to derailing the company’s plan.
Horsehead can now proceed with its plan that will eliminate most of its $427-million in pre-bankruptcy debt, cancel its stock and allow the company to emerge from Chapter 11 under the control of its noteholders, led by Greywolf Capital Management.
