Creditors of zinc producer Horsehead Holding Corp. have weighed in against a proposed bankruptcy financing package, saying that nearly 18 percent of the $90 million loan is going to benefit the company's top lenders in the form of fees, interest and legal costs, Dow Jones Daily Bankruptcy Review reported today. The Pittsburgh-based company sought chapter 11 protection on Feb. 2, seeking to reshape its balance sheet for tough industry conditions. Horsehead, a recycler of steel byproducts, says that it needs the money to keep going in the face of lowered prices and falling demands for its products, zinc, nickel and zinc oxide. Senior bondholders that are driving talks about a restructuring are offering the $90 million loan, on terms junior creditors term "egregious." Horsehead's bankruptcy lenders stand to tap the loan proceeds for more than $16 million for lender and lawyer fees and interest, the committee's lawyers noted.
