PITTSBURGH—The parent of Zochem Inc. has emerged from Chapter 11 bankruptcy protection, and the general manager of the Brampton, Ontario-based producer of zinc oxide said operations for the business ran smoothly throughout the process.
Zochem parent Horsehead Holding L.L.C. exited the Chapter 11 protection in September after the U.S. Bankruptcy Court for the District of Delaware confirmed its reorganization plan.
Horsehead said in a statement that the plan eliminates substantially all of the company's debt; converts about $205 million of senior secured debt into equity in the reorganized firm; provides for the repayment of its debtor-in-possession credit facility; provides for repayment in full for creditors at Zochem; and provides for distribution of cash, equity and warrants for its other prepetition creditors.
The company's new owners also have committed to fund additional equity to support the repair and restart of Horsehead's zinc production facility in Mooresboro, N.C., according to statement. Horsehead also converted from a Delaware-held corporation to a limited liability company. The names and structures of its major operating subsidiaries, including Zochem, remain unchanged.
“With the bankruptcy process behind us, we can now turn our full attention to our operations and strategic plans,” Horsehead CEO James Hensler said in the statement.