LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces an investigation on behalf of investors of Horsehead Holdings Corp. (“Horsehead” or the “Company”) (NASDAQ: ZINC) concerning the Company and its officers’ possible violations of federal securities laws. GPM is preparing a lawsuit on behalf of injured investors.
Horsehead, together with its subsidiaries, produces and sells zinc and nickel-based products primarily in the United States and Canada.
The investigation concerns whether or not the Company and its executives violated certain federal securities laws by failing to reveal the actual operational and efficiency obstacles facing Horsehead’s Mooresboro Facility (“Mooresboro”).
On December 10, 2015, Moody's downgraded the Company's corporate debt from B3 to Caa2 primarily due to an adverse perspective on the conditions of Mooresboro. Shortly thereafter in January 2016, the Company failed to make a $1.8 million interest payment to certain holders of the Company's convertible senior notes and consequently defaulted on multiple credit agreements.
Then on January 22, 2016, Horsehead declared a cease in operations at Mooresboro and the termination of most employees at the site. And, on February 2, 2016, Horsehead disclosed that it had started bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code. As a result, on February 11, 2016, trading in Horsehead stock was halted and about two weeks later, its common stock was delisted from the NASDAQ.
If you purchased Horsehead securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Lesley Portnoy, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by e-mail to email@example.com, or visit our website at http://www.glancylaw.com. If you inquire by e-mail please include your mailing address, telephone number and number of shares purchased.
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