The German subgroup applies for protective shield procedures

The Recylex Group (Euronext Paris: FR0000120388 - RX) indicates that today Weser-Metall GmbH, Harz-Metall GmbH, Norzinco GmbH and PPM Pure Metals GmbH have each applied for protective shield procedures ¹ in accordance with Section 270 b (1) sentence 1 of German Insolvency law. Self-administration procedures ² were applied for Recylex GmbH, C2P Germany GmbH and Recylex Grundstücksverwaltungsgesellschaft mbH. The objective which was to turnaround the Group as a whole, initiated during 2018, is now stopped due to the SARS-CoV-2 pandemic’s effects.

The French companies of the Recylex Group are not in the scope of these German procedures. Recylex S.A. is assessing the consequences of this development on its activities.

Sebastian Rudow, Chairman and Chief Executive Officer of Recylex S.A., commented:

"The rapid developments caused by the SARS-CoV-2 pandemic have effects we can no longer influence. The slump of the zinc price and the deteriorating economic outlook are now taking away the going concern perspective of Harz-Metall GmbH. As a result, the entire German management has been forced by German law to file for insolvency for all German companies of the Group. This abruptly ends the restructuring path that has been initiated after the technical difficulties due to the conversion of Nordenham's Bath Smelting Furnace for the combined operation with the new reduction furnace in 2018. With the protective shield procedures, the operationally active entities of the German subgroup will be entering a new path to face the challenges of the SARS-CoV-2 pandemic. I am expecting that the special restructuring benefits provided by German law in these procedures will enable the entities to continue their business operations and to pursue their restructuring according to a path individually chosen by them.  Weser-Metall GmbH’ smelter needs to be supplied continuously and the used lead-acid batteries recycling plants of Recylex S.A. are currently resuming their operations. Our polypropylene production in France stands with great know-how and high industrial standards. Without the challenges of the German subgroup, we can and must focus on our core in France. The improvement of our processes, the establishment of new customers and above all sustainable profitability are the primary targets in order to secure the foundation of the Group (within its reduced perimeter) and to be empowered to build on it with future investments. In the short term, however, Recylex S.A. has to find solutions to be able to pay off its debts in the future and, at first, to subsist the SARS-CoV-2 pandemic.”