The German operating units of French lead battery recycler Recylex have been forced by German law to request the opening of insolvency proceedings.
The management of the battery recycling subsidiaries Weser-Metall, Harz-Metall, Norzinco and PPM Pure Metals have applied to initiate a procedure known as “protective shield” in accordance of the German Insolvency Code.
The issue has arisen from the group’s Harz-Metall recycling facility, which has the capacity to recycle 60,000 lead-acid batteries per year, not being able to cover the €8.6million ($9 million) of additional funding required to continue.
This meant the other German entities were obliged to file requests for the opening of insolvency proceedings due to the joint responsibility of all the entities of the German subgroup towards the financial partners.
Recyclex hopes that by initiating “protective shield” procedures it can continue activity and establish a restructuring process specific to each of the subsidiaries, and therefore allow the entities to survive.
The Weser-Metall plant produces around 105,000 tons of lead annually.
The French companies of the Recylex Group are not within the scope of these procedures under German law.
Sebastian Rudow, chairman and CEO of Recylex, said: “I expect that the specific advantages offered by German law in this type of procedure will give the different entities the opportunity to continue their operations and to continue their restructuring according to the operating mode which will be chosen by each of them.”
The Weser-Metall foundry needs continuous supply, and the used lead-acid battery recycling plants of Recylex are resuming operations.
In March, the coronavirus forced Recylex to reduce operations at its French used lead-acid battery recycling plants to: maintenance, reception and expedition of planned deliveries, until further notice.