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 Grundst? 1/4 cksverwaltungsgesellschaft mbH (real estate property).
The lead and zinc recycler suspended the trading of its shares on the Paris Stock Exchange a day before the...