Recylex gets debt reprieve for German subsidiaries; EU rules Recylex must pay collusion fine

European lead and zinc smelter Recylex has again been granted a reprieve from debtors regarding repayments of loans its German subgroup took out to finance asset investment, but will also be on the hook for a €26.7 million ($29.9 million) fine from the European Union, the company said on May 24.

A group of German banks loaned Recylex's German subgroup, which includes zinc-oxide manufacturers Norzinco and Weser-Metall, €27 million to finance the maintenance of Weser-Metall's primary lead smelting furnace in Nordenham in 2018. The process has been fraught with difficulties and technical issues at the plant however, together with "a significant deterioration in commercial conditions" for sellers of zinc oxide and buyers of lead concentrate, which meant the...

Published

Archie Hunter

May 28, 2019

16:10 GMT

London