Recylex is looking at alternate avenues to strengthen its order book after its biggest customer and German subsidiary Weser-Metall filed for bankruptcy earlier this year.
The French lead recycler said in an operations update on September 23 that it was closely monitoring Weser-Metall’s insolvency procedure and the latter’s ability to continue sourcing secondary material from Recylex during this period. The company said that its order book was deeply affected after the smelter filed for bankruptcy in May this year.
Weser-Metall has completed the initial phase of its bankruptcy procedure—looking for a potential buyer for the insolvent company. According to Recylex, Glencore is the only remaining bidder for the German lead smelter. As a result, the French company is closely monitoring the deal in the hope of striking a long-term supply agreement with Glencore if it does acquire Weser-Metall’s assets.
According to Sebastian Rudow, chairman and chief executive officer of Recylex the company was facing an uncertain future due to Weser-Metall’s bankruptcy, and negotiating a new contract with the company that eventually buys the German smelter remained a priority. He added that Recylex continued to look at new avenues to shore up its order book in the medium-term and was in negotiations with other potential customers for its material as well.
Additionally, Recylex is looking to restructure its financial and non-financial debt, which includes a staggered payment of an environmental fine imposed by the European Commission on the group in 2017. The restructuring initiative will also include the ongoing legal procedure on the temporary suspension of the company’s rehabilitation works at the L’Estaque plant and the delay in the completion of the works.