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Horsehead Holding Objection Filed

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Horsehead Holding’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ motion for an exclusivity extension.

The committee asserts, “Such an extension would hamstring the ability of the Committee or other parties to pursue alternative plan structures that may unlock substantial additional value and provide for substantially increased recoveries to all parties, including general unsecured creditors.”

The objection continues, “The Debtors failed to establish that cause exists for the requested extension of their Exclusivity Periods because (i) the Debtors’ requested exclusivity extension will substantially prejudice unsecured creditors and other parties in these Chapter 11 Cases by allowing the Debtors to continue to control these Chapter 11 Cases for the sole benefit of the Lenders; and (ii) the Debtors cannot demonstrate a reasonable prospect for confirming their proposed Plan given the fatal defects with and objections to the Plan. Furthermore, the requested 150-day extension for the Debtors to file a new plan should be denied because it (i) significantly exceeds – and would be a breach of and directly contradict – the current amended DIP milestones which require plan confirmation by July 13, 2016; and (ii) would impermissibly bring these Chapter 11 Cases to a point in time at which the Debtors will lack sufficient funding to finance these cases since the liquidity available pursuant to the DIP Facility is anticipated to run out in September 2016, thus forcing the Debtors to default under the DIP Facility and allowing the Lenders to immediately exercise their rights….To the extent the Court determines that the Debtors have established cause solely to extend their Soliciting Exclusivity Period, the Court should limit such an extension to a 45-day period.”

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