Recylex German subgroups file for insolvency

Lead-zinc producer Recylex Group filed for insolvency protection for its German subsidiaries and will consequently lose control of its German subgroup, the company said last week.

Recylex, Europe’s third-largest lead-smelting company through its 105,000-tonnes-per-year Weser-Metall smelter in Nordenham, Germany, cited the fall in zinc price caused by the disruptions of the Covid-19 pandemic as the main reason for filing for insolvency protection for its German subsidiaries.
“Against the backdrop of the lockdown measures to face the [Covid-19] pandemic worldwide, metal prices fell dramatically.
“Given the macroeconomic outlook and after examining all the possible future scenarios, it appears that a sufficient short- and medium-term recovery cannot be expected,” Recylex said on May 14.
Weser-Metall GmbH, Harz-Metall GmbH, Norzinco GmbH and PPM Pure Metals GmbH have “each applied for protective shield procedures,” and self-administration procedures have been applied for the remaining German legal entities Recylex GmbH, C2P Germany GmbH and Recylex Grundstücksverwaltungsgesellschaft mbH (real estate property).

The lead and zinc recycler suspended the trading of its shares on the Paris Stock Exchange a day before the...

Published

Rijuta Dey Bera

May 18, 2020

04:30 GMT

New York