SSG Capital Advisors acted as investment banker and financial advisor to the Official Committee of Equity Security Holders in the restructuring of Horsehead Holding.
The equity committee retained SSG to provide various services to support its investigation. These included a review and analysis of the company and the plan, an enterprise valuation of the company, a review and analysis of valuations prepared by the company and its advisors, a review and analysis of restructuring and other strategic alternatives available and expert testimony.
The Chapter 11 plan of reorganization was approved in the U.S. Bankruptcy Court for the District of Delaware and became effective in September 2016. Horsehead had filed for protection in February 2016.
Horsehead produces zinc and nickel-based products for sale primarily throughout the U.S. and Canada.
The precipitous drop in zinc prices during the Q4/15 and Q1/16 coupled with constrained liquidity due to startup issues at a newly constructed zinc processing facility resulted in Horsehead defaulting on its senior line of credit.
The court had appointed the equity committee in May 2016 to investigate what happened to the company’s value shortly before and after the petition date and to determine if the company’s public shareholders were unjustly being left with no recovery under the plan.
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Horsehead Holding Enters Forbearance Agreements with Macquarie, PNC