Exhibit 99.1

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 1 of 20

UNITED STATES BANKRUPTCY COURT

FOR THE DISTRICT OF DELAWARE


In re: HORSEHEAD HOLDING CORP		Case No. 16-10287, 288, 289, 290, 291
Debtor		Reporting Period: July 1 - 31, 2016

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

Submit copy of report to any official committee appointed in the case.


REQUIRED DOCUMENTS	Form No.	Document Attached	Explanation Attached	Affidavit/Supplement Attached
Schedule of Cash Receipts and Disbursements	MOR-1	x
Bank Reconciliation (or copies of debtor’s bank reconciliations)	MOR-1a		x
Schedule of Professional Fees Paid	MOR-1b	x
Copies of bank statements			x
Cash disbursements journals			x
Statement of Operations	MOR-2	x
Balance Sheet	MOR-3	x
Status of Postpetition Taxes	MOR-4	x
Copies of IRS Form 6123 or payment receipt		n/a
Copies of tax returns filed during reporting period		n/a
Summary of Unpaid Postpetition Debts	MOR-4	x
Listing of aged accounts payable	MOR-4	x
Accounts Receivable Reconciliation and Aging	MOR-5	x
Debtor Questionnaire	MOR-5	x

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.



Signature of Debtor				Date


Signature of Joint Debtor				Date

/s/ Timothy D. Boates				8/22/2016

Signature of Authorized Individual*				Date

Timothy D. Boates				Chief Restructuring Officer
Printed Name of Authorized Individual				Title of Authorized Individual

*	Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

MOR

(04/07)

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 2 of 20


In re: HORSEHEAD HOLDING CORP	MOR-1	Case No. 16-10287, 288, 289, 290, 291
Debtor	Month-to-Date	Reporting Period: July 1 - 31, 2016

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS

Amounts reported should be per the debtor’s books, not the bank statement. The beginning cash should be the ending cash from the prior month or, if this is the first report, the amount should be the balance on the date the petition was filed. The amounts reported in the “CURRENT MONTH - ACTUAL” column must equal the sum of the four bank account columns. The amounts reported in the “PROJECTED” columns should be taken from the SMALL BUSINESS INITIAL REPORT (FORM IR-1). Attach copies of the bank statements and the cash disbursements journal. The total disbursements listed in the disbursements journal must equal the total disbursements reported on this page. A bank reconciliation must be attached for each account. [See MOR-1 (CON’T)]


	JULY 1-31, 2016
	16-10287 HORSEHEAD HOLDINGS								16-10288 HORSEHEAD CORPORATION
	WFC -2552			PNC -3765		TOTAL			PNC -3127		WFC -9756		WFC -6331			PNC -7517		PNC -7525		WFC -1949			WFC -1931			TOTAL

BEGINNING BALANCE		5,578,223			0		5,578,223			0		3,034,727		0			0		0		(26,486	)		(421,928	)		2,586,313

CASH RECEIPTS
Trade Receipts														15,384,956										(40,544	)		15,344,412
Other Receipts		2,191					2,191

		2,191			0		2,191			0		0		15,384,956			0		0		0			(40,544	)		15,344,412

CASH DISBURSEMENTS
Payroll & Taxes												2,386,326									68,904			4,423			2,459,653
Benefits												922,624												21,450			944,075
Purchases												2,233,905												662,625			2,896,530
Freight		24,031					24,031					1,712,534												1,891,529			3,604,062
Utilities																								1,004,643			1,004,643
Leases												20,275															20,275
Insurance												276,345												23,376			299,721
Miscellaneous		609					609					17,398												605,376			622,773
Contract Services												1,004,967												1,748,814			2,753,780
Supplies												56,964												2,010,818			2,067,783
Other Operating Costs												201,753												75,493			277,246
DIP Fees												766,667												43,325			809,992
Professional Fees		0			0		0			0		2,643,878		0			0		0		0			0			2,643,878
CapEX												327,204												27,546			354,750
Macquarie Interest												217,757															217,757
503(b)(9) Payments																								303,829			303,829
Critical Vendors - Freight												50,548															50,548

		24,640			0		24,640			0		12,839,143		0			0		0		68,904			8,423,247			21,331,294

Net Bank Account Transfers		(5,000,000	)		0		(5,000,000	)		0		13,935,838		(15,384,956	)		0		0		73,392			6,375,726			5,000,000
DIP Facility Drawdown		7,000,000					7,000,000

ENDING BOOK BALANCE		7,555,774			0		7,555,774			0		4,131,422		0			0		0		(21,999	)		(2,509,993	)		1,599,431


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS							24,640																				21,331,294
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES							24,640																				21,331,294


	JULY 1-31, 2016
	16-10290 INMETCO										16-10291 Zochem																GRAND TOTAL
	WFC -4964		WFC -5018			WFC -0254			TOTAL		WFC -4972			WFC -4980			PNC -6944		PNC -6952		SB -5117		SB -0918		TOTAL		GRAND TOTAL

BEGINNING BALANCE		5,991,580		0			(62,982	)		5,928,598		792,149			0			0		0		791,574		543,884		2,127,607		16,220,741

CASH RECEIPTS
Trade Receipts				2,722,006						2,722,006		(159,772	)		9,148,407							193,422		1,382,275		10,564,331		28,630,749
Other Receipts																						1,216,137				1,216,137		1,218,328

		0		2,722,006			0			2,722,006		(159,772	)		9,148,407			0		0		1,409,558		1,382,275		11,780,468		29,849,078

CASH DISBURSEMENTS
Payroll & Taxes		11,654					3,968			15,622												228,259				228,259		2,703,534
Benefits							80,234			80,234												46,144				46,144		1,070,453
Purchases		46,136					299,421			345,556		9,131,931										9,541		4,266		9,145,738		12,387,824
Freight							97,064			97,064												252,720		129,343		382,063		4,107,220
Utilities		415,410					174,783			590,193												409,491				409,491		2,004,326
Leases																						861				861		21,136
Insurance																												299,721
Miscellaneous		8,795		300			18,493			27,588		2,622										138,519		9,878		151,020		801,991
Contract Services		18,344					264,351			282,695												8,664		1,096		9,760		3,046,236
Supplies							463,995			463,995												149,205		117,082		266,287		2,798,064
Other Operating Costs							44,074			44,074												61,432		53,336		114,768		436,088
DIP Fees							13,000			13,000														30,000		30,000		852,992
Professional Fees		0		0			0			0		0			0			0		0		27,784		0		27,784		2,671,662
CapEX							47,864			47,864												41,695				41,695		444,308
Macquarie Interest																												217,757
503(b)(9) Payments																						115,447				115,447		419,276
Critical Vendors - Freight		8,353								8,353																		58,901

		508,692		300			1,507,245			2,016,237		9,134,553			0			0		0		1,489,763		345,001		10,969,317		34,341,489

Net Bank Account Transfers		1,586,461		(2,721,706	)		1,135,245			0		9,148,407			(9,148,407	)		0		0		0		0		0		—
DIP Facility Drawdown																												7,000,000

ENDING BOOK BALANCE		7,069,350		0			(434,982	)		6,634,367		646,230			0			0		0		711,369		1,581,158		2,938,758		18,728,330


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS										2,016,237																10,969,317		34,341,489
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES										2,016,237																10,969,317		34,341,489

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 3 of 20


In re: HORSEHEAD HOLDING CORP	MOR-1	Case No. 16-10287, 288, 289, 290, 291
Debtor	Case-to-Date	Reporting Period: July 1 - 31, 2016

SCHEDULE OF CASH RECEIPTS AND DISBURSEMENTS


	FEBRUARY 2 - JULY 31, 2016
	16-10287 HORSEHEAD HOLDINGS									16-10288 HORSEHEAD CORPORATION
	WFC -2552			PNC -3765			TOTAL			PNC -3127		WFC -9756		WFC -6331			PNC -7517			PNC -7525			WFC -1949			WFC -1931			TOTAL

BEGINNING BALANCE		536			77,440			77,976			0		36,008		0			13			1,323,180			0			0			1,359,201
CASH RECEIPTS
Trade Receipts					2,686,953			2,686,953					222,520		63,344,812						21,025,311						(40,544	)		84,552,099
Other Receipts		15,778,750			630			15,779,380					278																	278

		15,778,750			2,687,583			18,466,333			0		222,799		63,344,812			0			21,025,311			0			(40,544	)		84,552,378
CASH DISBURSEMENTS
Payroll & Taxes		35,191			37,371			72,562			68,482		16,123,821											515,081			56,615			16,763,998
Benefits		2,472,421						2,472,421			25,594		3,084,150								(90	)					79,691			3,189,345
Purchases		8,081,202			889,099			8,970,301			892,071		7,503,188														1,980,096			10,375,355
Freight		6,518,036			35,691			6,553,726			1,693,638		5,837,249														5,966,619			13,497,507
Utilities		502,207			5,477			507,684			1,231,120							(322,102	)								2,748,793			3,657,811
Leases		39,869						39,869			599,817		61,817																	661,634
Insurance		1,227,225			206,037			1,433,262			102,673		2,213,598														96,481			2,412,752
Miscellaneous		(128,691	)		4,000			(124,691	)		489,663		561,887					19,567									1,416,776			2,487,893
Contract Services		2,381,075			92,742			2,473,816			1,546,783		2,878,661														5,109,047			9,534,492
Supplies		925,153			50,936			976,089			1,097,177		404,033														4,353,277			5,854,486
Other Operating Costs		44,684			46,059			90,743			170,410		545,625								790,065						106,460			1,612,561
DIP Fees		1,101,861						1,101,861					2,130,139														82,850			2,212,989
Professional Fees		3,018,529			—			3,018,529			—		11,749,132		—			—			—			—			—			11,749,132
CapEX		220,129						220,129					1,290,758														27,546			1,318,304
Utility Deposits		(370,720	)					(370,720	)		212,142		3,661					781,500												997,303
Macquarie Interest		418,028						418,028					666,898																	666,898
503(b)(9) Payments		237,064						237,064																			396,684			396,684
Critical Vendors - Freight		922,861						922,861					1,334,643																	1,334,643
Critical Vendors - Material Vendors													113,244																	113,244
Recycling Entity Buyout (including interest)													1,078,017																	1,078,017
PNC Facility Repayment																														—

		27,646,124			1,367,411			29,013,535			8,129,570		57,580,522		0			478,965			789,974			515,081			22,420,935			89,915,047

Net Bank Account Transfers		(6,577,388	)		(1,397,612	)		(7,975,000	)		8,129,570		61,453,137		(63,344,813	)		478,952			(21,558,517	)		493,082			19,951,486			5,602,898
DIP Facility Drawdown		26,000,000						26,000,000

ENDING BOOK BALANCE		7,555,774			(0	)		7,555,774			0		4,131,422		(0	)		0			(0	)		(21,999	)		(2,509,993	)		1,599,430


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS								29,013,535																						89,915,047
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES								29,013,535																						89,915,047


	FEBRUARY 2 - JULY 31, 2016
	16-10290 INMETCO										16-10291 Zochem																			GRAND TOTAL
	WFC -4964		WFC -5018			WFC -0254			TOTAL		WFC -4972			WFC -4980			PNC -6944			PNC -6952			SB -5117		SB -0918			TOTAL		GRAND TOTAL

BEGINNING BALANCE		0		0			0			0		0			0			(434	)		652,850			298,010		238,283			1,188,709		2,625,886

CASH RECEIPTS
Trade Receipts				17,524,527						17,524,527		(159,772	)		25,269,554						20,467,859			963,020		10,966,806			57,507,467		162,312,504
Other Receipts				150						150								18,677,793						5,899,626					24,577,419		40,357,228

		0		17,524,677			0			17,524,677		(159,772	)		25,269,554			18,677,793			20,467,859			6,862,646		10,966,806			82,084,886		202,628,274

CASH DISBURSEMENTS
Payroll & Taxes		129,684		415			98,052			228,150														1,449,090					1,449,090		18,513,801
Benefits				75			255,593			255,668														422,265					422,265		6,339,698
Purchases		213,773		85,722			1,072,437			1,371,932		27,313,258						19,758,327						116,677		7,448,572			54,636,835		75,354,423
Freight		95,276		18,800			289,083			403,160		7,163			2,094			139,664						1,304,986		578,751			2,032,657		22,487,050
Utilities		1,756,832					537,113			2,293,944														1,526,941		84,049			1,610,990		8,070,429
Leases							782			782														3,513					3,513		705,798
Insurance							110,462			110,462								127,266											127,266		4,083,742
Miscellaneous		17,942		7,870			60,683			86,495		8,832						9,558						465,218		107,648			591,255		3,040,952
Contract Services		305,530		14,459			1,655,478			1,975,466														108,865		1,161			110,026		14,093,800
Supplies		24,684		204,040			1,595,585			1,824,309														827,171		708,967			1,536,138		10,191,023
Other Operating Costs							396,634			396,634														423,279		238,851			662,130		2,762,068
DIP Fees							19,500			19,500																60,000			60,000		3,394,350
Professional Fees		—		—			—			—		124,603			—			—			—			44,271		185,933			354,806		15,122,468
CapEX		514,521		92,566			1,026,491			1,633,578														41,695					41,695		3,213,705
Utility Deposits							5,780			5,780																			—		632,363
Macquarie Interest																													—		1,084,926
503(b)(9) Payments		132,462								132,462														115,447					115,447		881,657
Critical Vendors - Freight		151,987								151,987		6,406						8,759						259,869					275,033		2,684,525
Critical Vendors - Material Vendors																													—		113,244
Recycling Entity Buyout (including interest)																													—		1,078,017
PNC Facility Repayment																		18,677,793											18,677,793		18,677,793

		3,342,691		423,946			7,123,672			10,890,310		27,460,260			2,094			38,721,367			0			7,109,286		9,413,931			82,706,939		212,525,831

Net Bank Account Transfers		10,412,040		(17,100,730	)		6,688,690			0		28,266,264			(25,267,460	)		20,044,008			(21,120,710	)		660,000		(210,000	)		2,372,102		(0	)
DIP Facility Drawdown																															26,000,000

ENDING BOOK BALANCE		7,069,349		0			(434,983	)		6,634,367		646,231			0			(0	)		(0	)		711,369		1,581,158			2,938,758		18,728,330


DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES: (FROM CURRENT MONTH ACTUAL COLUMN)
TOTAL DISBURSEMENTS										10,890,310																			82,706,939		212,525,831
LESS: TRANSFERS TO DEBTOR IN POSSESSION ACCOUNTS
PLUS: ESTATE DISBURSEMENTS MADE BY OUTSIDE SOURCES

TOTAL DISBURSEMENTS FOR CALCULATING U.S. TRUSTEE QUARTERLY FEES										10,890,310																			82,706,939		212,525,831

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 4 of 20


In re: HORSEHEAD HOLDING CORP	MOR-1b	Case No. 16-10287, 288, 289, 290, 291
Debtor		Reporting Period: July 1 - 31, 2016

SCHEDULE OF PROFESSIONAL FEES AND EXPENSES PAID

This schedule is to include all retained professional payments from case inception to current month


Payee	Period Covered	Amount Approved			Check		Amount Paid				Year-To-Date
Payee	Period Covered	Amount Approved		Payor	Number	Date	Fees		Expenses		Fees		Expenses

RAS Management Advisors, LLC	Week ending February 6, 2016	$	56,554.00	Horsehead Holding	WT	3/16/16	$	52,950.00	$	3,604.00
	Week ending February 13, 2016	$	69,865.00	Horsehead Holding	WT	3/16/16	$	63,000.00	$	6,865.00
	Week ending February 20, 2016	$	72,085.00	Horsehead Holding	WT	3/16/16	$	65,125.00	$	6,960.00
	Week ending February 27, 2016	$	72,281.00	Horsehead Holding	WT	3/16/16	$	66,775.00	$	5,506.00
	Week ending March 5, 2016	$	74,313.00	Horsehead Holding	WT	3/16/16	$	67,450.00	$	6,863.00
	Week ending March 12, 2016	$	61,610.00	Horsehead Holding	WT	3/16/16	$	58,075.00	$	3,535.00	$	373,375.00	$	33,333.00
	Week ending March 19, 2016	$	78,345.00	Horsehead Holding	WT	3/22/16	$	71,475.00	$	6,870.00	$	444,850.00	$	40,203.00
	Week ending March 26, 2016	$	63,461.00	Horsehead Holding	WT	4/4/16	$	60,175.00	$	3,286.00	$	505,025.00	$	43,489.00
	Week ending April 2, 2016	$	66,924.00	Horsehead Holding	WT	4/8/16	$	61,700.00	$	5,224.00	$	566,725.00	$	48,713.00
	Week ending April 9, 2016	$	58,651.00	Horsehead Holding	WT	4/13/16	$	55,250.00	$	3,401.00	$	621,975.00	$	52,114.00
	Week ending April 16, 2016	$	64,189.00	Horsehead Holding	WT	4/21/16	$	60,325.00	$	3,864.00	$	682,300.00	$	55,978.00
	Week ending April 23, 2016	$	53,260.00	Horsehead Holding	WT	4/28/16	$	51,425.00	$	1,835.00	$	733,725.00	$	57,813.00
	Week ending April 30, 2016	$	63,601.00	Horsehead Holding	WT	5/5/16	$	60,125.00	$	3,476.00	$	793,850.00	$	61,289.00
	Week ending May 7, 2016	$	63,857.00	Horsehead Holding	WT	5/12/16	$	60,150.00	$	3,707.00	$	854,000.00	$	64,996.00
	Week ending May 14, 2016	$	53,547.00	Horsehead Holding	WT	5/19/16	$	51,975.00	$	1,572.00	$	905,975.00	$	66,568.00
	Week ending May 21, 2016	$	62,196.00	Horsehead Holding	WT	5/26/16	$	58,575.00	$	3,621.00	$	964,550.00	$	70,189.00
	Week ending May 28, 2016	$	57,916.00	Horsehead Holding	WT	6/2/16	$	55,850.00	$	2,066.00	$	1,020,400.00	$	72,255.00
	Week ending June 4, 2016	$	55,511.00	Horsehead Holding	WT	6/9/16	$	51,300.00	$	4,211.00	$	1,071,700.00	$	76,466.00
	Week ending June 11, 2016	$	60,589.00	Horsehead Holding	WT	6/16/16	$	58,600.00	$	1,989.00	$	1,130,300.00	$	78,455.00
	Week ending June 18, 2016	$	61,511.00	Horsehead Holding	WT	6/23/16	$	57,275.00	$	4,236.00	$	1,187,575.00	$	82,691.00
	Week ending June 25, 2016	$	53,595.00	Horsehead Holding	WT	6/29/16	$	49,825.00	$	3,770.00	$	1,237,400.00	$	86,461.00
	Week ending July 2, 2016	$	63,907.00	Horsehead Holding	WT	7/7/16	$	59,925.00	$	3,982.00	$	1,297,325.00	$	90,443.00
	Week ending July 9, 2016	$	57,667.00	Horsehead Holding	WT	7/14/16	$	53,800.00	$	3,867.00	$	1,351,125.00	$	94,310.00
	Week ending July 16, 2016	$	57,747.00	Horsehead Holding	WT	7/21/16	$	55,550.00	$	2,197.00	$	1,406,675.00	$	96,507.00
	Week ending July 23, 2016	$	66,781.00	Horsehead Holding	WT	7/28/16	$	62,925.00	$	3,856.00	$	1,469,600.00	$	100,363.00

Epiq Bankruptcy Solutions	Month of February	$	95,985.25	Horsehead Holding	WT	5/18/16	$	95,458.40	$	526.85
	Month of March	$	133,455.55	Horsehead Holding	WT	5/18/16	$	132,930.07	$	525.48	$	228,388.47	$	1,052.33

Kirkland & Ellis LLC	Month of February	$	1,191,560.66	Horsehead Holding	WT	5/13/16	$	1,164,569.88	$	26,990.78
	Month of March 2016	$	909,229.00	Horsehead Holding	WT	6/8/16	$	872,456.36	$	36,772.64	$	2,037,026.24	$	63,763.42
	Month of April 2016	$	975,493.56	Horsehead Holding	WT	6/27/16	$	957,416.52	$	18,077.04	$	2,994,442.76	$	81,840.46
	Month of May 2016	$	649,100.45	Horsehead Holding	WT	7/19/16	$	637,806.56	$	11,293.89	$	3,632,249.32	$	93,134.35

Lazard Middle Market LLC	Month of February	$	1,086,657.73	Horsehead Holding	WT	5/13/16	$	1,080,000.00	$	6,657.73
	Month of March 2016	$	104,485.36	Horsehead Holding	WT	6/10/16	$	100,000.00	$	4,485.36	$	1,180,000.00	$	11,143.09
	Month of April 2016	$	119,688.68		WT	7/18/16	$	100,000.00	$	19,688.68	$	1,280,000.00	$	30,831.77

Paculski, Stang, Ziehl & Jones	Month of February 2016	$	153,563.30	Horsehead Holding	WT	6/14/16	$	134,558.40	$	19,004.90	$	134,558.40	$	19,004.90

Klehr Harrison	Month of February/March 2016	$	31,379.20	Zochem	WT	6/29/16	$	31,332.20	$	47.00
	Month of April 2016	$	4,362.20	Zochem	WT	6/29/16	$	4,264.40	$	97.80	$	35,596.60	$	144.80

FORM MOR-1b

(04/07)

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 5 of 20


In re. HORSEHEAD HOLDING CORP.	MOR - 2	Case No. 16-10287, 288, 289, 290, 291
Debtor	MTH	Reporting Period: July 1 - 31, 2016

Horsehead Holding Corp. and Subsidiaries

CONSOLIDATING STATEMENTS OF OPERATIONS

DEBTOR IN POSSESSION

For the month ended July 31, 2016 (UNAUDITED)

(Amounts in thousands, except per share amounts)

FINAL AUGUST 15th


	Horsehead
	Holding			Horsehead
	Corp.			Corporation			HMP			INMETCO			Zochem			Eliminations			Consolidated

Net sales of zinc material and other goods	$	—		$	11,041		$	675		$	—		$	9,375		$	—		$	21,091
Net sales of nickel based material and other services		—			—			—			2,998			—			—			2,998
EAF dust service fees		—			2,979			—			—			—			(130	)		2,849


Net sales		—			14,020			675			2,998			9,375			(130	)		26,938

Cost of sales of zinc material and other goods		—			8,948			1,508			—			8,546			—			19,002
Cost of sales of nickel based material and other services		—			—			—			2,111			—			(130	)		1,981
Cost of EAF dust services		—			2,615			—			—			—			—			2,615
Fire related costs		—			—			—			101			—			—			101
Insurance claim income		—			—			—			—			—			—			—


Cost of sales (excluding depreciation and amortization)		—			11,563			1,508			2,212			8,546			(130	)		23,699
Depreciation and amortization		—			1,099			424			290			199			—			2,012
Selling, general and administrative expenses		41			1,190			29			194			177			—			1,631

Total costs and expenses		41			13,852			1,961			2,696			8,922			(130	)		27,342

Income from operations		(41	)		168			(1,286	)		302			453			—			(404	)

Equity in income of subsidiary, net of taxes		(1,313	)		—			—			—			—			1,313			—

Other income (expense)
Interest expense		(1,944	)		(909	)		—			(37	)		(251	)		19			(3,122	)
Interest and other income		19			2			—			—			—			(19	)		2
Other income (expense)		—			6			—			1			(18	)		—			(11	)

Total other income (expense)		(1,925	)		(901	)		—			(36	)		(269	)		—			(3,131	)

REORGANIZATION ITEMS, NET		(3,247	)		—			—			—			399			—			(2,848	)

Income before income taxes		(6,526	)		(733	)		(1,286	)		266			583			1,313			(6,383	)
Income tax provision		—			—			—			—			143			—			143


NET INCOME(LOSS)	$	(6,526	)	$	(733	)	$	(1,286	)	$	266		$	440		$	1,313		$	(6,526	)

NOTE: THE MARCH 31 AND JUNE 30, 2016 BALANCES MAY BE ADJUSTED UPON COMPLETION OF THE 2016 1ST AND 2ND QTR REVIEWS AND MAY AFFECT THESE RESULTS

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 6 of 20


In re. HORSEHEAD HOLDING CORP.	MOR - 2	Case No. 16-10287, 288, 289, 290, 291
Debtor	Case to Date	Reporting Period: July 1 - 31, 2016

Horsehead Holding Corp. and Subsidiaries

CONSOLIDATING STATEMENTS OF OPERATIONS

DEBTOR IN POSSESSION

For the period February 2 to July 31, 2016 (UNAUDITED)

(Amounts in thousands, except per share amounts)

FINAL AUGUST 15th


	Horsehead
	Holding			Horsehead
	Corp.			Corporation			HMP			INMETCO			Zochem			Eliminations			Consolidated

Net sales of zinc material and other goods	$	—		$	58,438		$	8,018		$	—		$	59,745		$	—		$	126,201
Net sales of nickel based material and other services		—			—			—			16,743			—			—			16,743
EAF dust service fees		—			19,630			—			—			—			(550	)		19,080


Net sales		—			78,068			8,018			16,743			59,745			(550	)		162,024

Cost of sales of zinc material and other goods		—			56,476			20,745			—			55,393			—			132,614
Cost of sales of nickel based material and other services		—			—			—			14,017			—			(550	)		13,467
Cost of EAF dust services		—			14,694			—			—			—			—			14,694
Fire related cost		—			—			—			1,047			—			—			1,047
Insurance claim income		—			—			—			(1,000	)		—			—			(1,000	)


Cost of sales (excluding depreciation and amortization)		—			71,170			20,745			14,064			55,393			(550	)		160,822
Depreciation and amortization		—			7,097			2,546			1,548			1,146			—			12,337
Selling, general and administrative expenses		367			7,660			232			1,109			941			—			10,309

Total costs and expenses		367			85,927			23,523			16,721			57,480			(550	)		183,468

Income from operations		(367	)		(7,859	)		(15,505	)		22			2,265			—			(21,444	)

Equity in income of subsidiary, net of taxes		(35,624	)		—			—			—			—			35,624			—

Other income (expense)
Interest expense		(10,324	)		(6,310	)		(37	)		(225	)		(1,542	)		524			(17,914	)
Interest and other income		523			8			—			—			—			(524	)		7
Other income (expense)		—			19			—			124			(192	)		—			(49	)

Total other income (expense)		(9,801	)		(6,283	)		(37	)		(101	)		(1,734	)		—			(17,956	)

REORGANIZATION ITEMS, NET		(29,312	)		(4,915	)		—			—			(1,761	)		—			(35,988	)

Income before income taxes		(75,104	)		(19,057	)		(15,542	)		(79	)		(1,230	)		35,624			(75,388	)
Income tax provision		—			—			—			—			(284	)		—			(284	)


NET INCOME(LOSS)	$	(75,104	)	$	(19,057	)	$	(15,542	)	$	(79	)	$	(946	)	$	35,624		$	(75,104	)

NOTE: THE MARCH 31 AND JUNE 30, 2016 BALANCES MAY BE ADJUSTED UPON COMPLETION OF THE 2016 1ST AND 2ND QTR REVIEWS AND MAY AFFECT THESE RESULTS

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 7 of 20


In re. HORSEHEAD HOLDING CORP	MOR -2	Case No. 16-10287, 288, 289, 290, 291
Debtor	CONT	Reporting Period: July 1 - 31, 2016

INCOME (EXPENSE)

REORGANIZATION CHARGES


	FEBRUARY			MARCH			APRIL			MAY			JUNE			JULY			YTD
HHC
Professional Fee		(2,544	)		(7,782	)		(4,248	)		(4,933	)		(5,288	)		(3,247	)		(28,042	)	*SG&A*
Interest Expense		(1,270	)		—			—			—			—						(1,270	)	*Int Exp*

		(3,814	)		(7,782	)		(4,248	)		(4,933	)		(5,288	)		(3,247	)		(29,312	)

HORSEHEAD
Hedges		49			—			—			—			—						49		*Sales*
Interest Exp		(4,839	)		—			—			(88	)		(37	)					(4,964	)	*Int Exp*

		(4,790	)		—			—			(88	)		(37	)		—			(4,915	)

HMP
Other Income		—			—			—			—			—						—		*Oth Inc*

INMETCO
Hedges		—			—			—			—			—						—		*COS*

ZOCHEM
Hedges		(49	)		—			—			—			—						(49	)	*Sales*
Profess Fee/Other		(360	)		(511	)		(693	)		(256	)		(146	)		399			(1,567	)	*SG&A*
Interest Exp		(145	)		—			—			—			—						(145	)	*Int Exp*

		(554	)		(511	)		(693	)		(256	)		(146	)		399			(1,761	)

TOTAL		(9,158	)		(8,293	)		(4,941	)		(5,277	)		(5,471	)		(2,848	)		(35,988	)

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 8 of 20


In re. HORSEHEAD HOLDING CORP	MOR-3	Case No. 16-10287, 288, 289, 290, 291
Debtor		Reporting Period: July 1 - 31, 2016

Horsehead Holding Corp. and Subsidiaries

CONSOLIDATING BALANCE SHEETS

DEBTOR IN POSSESSION

JULY 31, 2016 (UNAUDITED)

(Amounts in thousands, except per share amounts)

FINAL AUGUST 15th


ASSETS	Horsehead Holding Corp.			Horsehead Corporation		HMP			Zochem			INMETCO		Eliminations			Consolidated

Current assets
Cash and cash equivalents	$	7,556		$	4,065	$	—		$	3,330		$	6,633	$	—		$	21,584
Accounts receivable, net of allowance		384			12,601		1,909			18,684			5,738		(624	)		38,692
Inventories, net		—			5,351		5,422			11,267			4,811		—			26,851
Prepaid expenses and other current assets		1,504			11,752		—			2,110			349		(6,973	)		8,742
Deferred income taxes		—			—		—			—			—		—			—


Total current assets		9,444			33,769		7,331			35,391			17,531		(7,597	)		95,869

Property, plant and equipment, net		—			108,138		86,627			23,893			32,692		—			251,350

Other assets
Intangible assets		—			7,460		—			83			1,478		—			9,021
Restricted cash		—			7,939		—			—			—		—			7,939
Deferred income taxes		—			—		—			—			—		—			—
Investment in and advances to subsidiary		114,579			75,664		(742,487	)		12,252			547		539,445			—
Deposits and other		—			247		403			873			520		—			2,043


Total other assets		114,579			91,310		(742,084	)		13,208			2,545		539,445			19,003

Total assets	$	124,023		$	233,217	$	(648,126	)	$	72,492		$	52,768	$	531,848		$	366,222

LIABILITIES AND STOCKHOLDERS’ EQUITY	Horsehead Holding Corp.			Horsehead Corporation		HMP			Zochem			INMETCO		Eliminations			Consolidated

Current liabilities
Current Maturities of long-term debt	$	—		$	—	$	—		$	—		$	—	$	—		$	—
Notes payable		—			—		—			—			—		—		$	—
DEBTOR IN POSSESSION FINANCING		—			45,822		—			18,678			—		—			64,500
Accounts payable		9,113			13,541		856			1,819			1,735		(418	)		26,646
Accrued expenses		10,762			15,283		255			668			2,561		(207	)		29,322
Income Taxes Payable		—			4,237		—			(950	)		595		(6,973	)		(3,091	)

Total current liabilities		19,875			78,883		1,111			20,215			4,891		(7,598	)		117,377

LIABILITIES SUBJECT TO COMPROMISE - SECURED DEBT		208,588			49,625		5,000			—			—		—			263,213
LIABILITIES SUBJECT TO COMPROMISE - PRIORITY DEBT		—			1,931		167			—			—		—			2,098
LIABILITIES SUBJECT TO COMPROMISE - UNSECURED DEBT (AP & AL)		142,946			27,919		28,880			7,406			4,894		—			212,045

Long-term debt, less current maturities		—			—		—			—			10,000		(10,000	)		—

Other long-term liabilities		—			13,383		—			26			1,885		—			15,294

Deferred income taxes		—			—		—			3,112			—		—			3,112

Commitments and contingencies		—			—		—			—			—		—

Stockholders’ equity
Horsehead Holding Corp. stockholders’ equity:
Common stock, par value $.01 per share; 100,000 shares		0			0		0			0			0		0
with voting rights authorized;		602			—		—			—			—		—			602
Preferred stock, par value $.01 per share; 10,000 shares		—			—		—			—			—		—
authorized; no shares issued or outstanding		—			—		—			—			—		—			—
Additional paid-in capital		398,663			16,241		—			—			29,081		(45,321	)		398,664
Retained earnings		(646,651	)		45,235		(683,284	)		41,733			2,017		594,767			(646,183	)


Total stockholders’ equity before noncontrolling interest		(247,386	)		61,476		(683,284	)		41,733			31,098		549,446			(246,917	)

Noncontrolling interest		—			—		—			—			—		—			—

Total stockholders’ equity		(247,386	)		61,476		(683,284	)		41,733			31,098		549,446			(246,917	)


Total liabilities and stockholders’ equity	$	124,023		$	233,217	$	(648,126	)	$	72,492		$	52,768	$	531,848		$	366,222

NOTE: THE JUNE 30, 2016 BALANCES MAY BE ADJUSTED UPON COMPLETION OF THE 2016 1ST AND 2ND QTR REVIEWS AND MAY AFFECT THESE RESULTS

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 9 of 20


In re: HORSEHEAD HOLDING CORP	MOR - 4	Case No. 16-10287, 288, 289, 290, 291
Debtor		Reporting Period: July 1 - 31, 2016

STATUS OF POSTPETITION TAXES

The beginning tax liability should be the ending liability from the prior month or, if this is the first report, the amount should be zero.

Attach photocopies of IRS Form 6123 or payment receipt to verify payment or deposit of federal payroll taxes.

Attach photocopies of any tax returns filed during the reporting period.


	Beginning Tax Liability		Amount Withheld or Accrued		Amount Paid		Date Paid		Check No. or EFT		Ending Tax Liability
Federal
Withholding		13,214		364,605		371,740		Various dates		EFT thru payroll provider		6,079
FICA-Employee		—		187,096		187,096		Various dates		EFT thru payroll provider		—
FICA-Employer		79,095		188,499		186,448		Various dates		EFT thru payroll provider		81,146
Unemployment		1,258		4,827		4,798		Various dates		EFT thru payroll provider		1,287
Income		—		—		—						—
Other:		—		—		—						—

Total Federal Taxes		93,567		745,027		750,082						88,512

State and Local
Withholding		—		91,542		91,542		Various dates		EFT thru payroll provider		—
Sales		18,972		—		2,766		Various dates		various		16,206
Excise		—		—		—						—
Unemployment		14,858		12,940		11,603		Various dates		EFT thru payroll provider		16,195
Real Property		852,802		102,050		269,725						685,127
Personal Property		—				—						—
Other:		—		—		—						—

Total State and Local		886,632		206,532		375,636						717,528

Total Taxes		980,199		951,559		1,125,718						806,040

SUMMARY OF UNPAID POSTPETITION DEBTS

Attach aged listing of accounts payable.


	Number of Days Past Due
	Current		0-30		31-60		61-90		Over 90		Total
Accounts Payable		17,213,000		—		—		—		—		17,213,000
Wages Payable		4,193,000		—		—		—		—		4,193,000
Taxes Payable		806,040		—		—		—		—		806,040
Rent/Leases-Building		—		—		—		—		—		—
Rent/Leases-Equipment		—		—		—		—		—		—
Secured Debt/Adequate Protection Payments		—		—		—		—		—		—
Professional Fees		9,433,000		—		—		—		—		9,433,000
Amounts Due to Insiders*		—		—		—		—		—		—
Other:
Other:

Total Postpetition Debts		31,645,040		—		—		—		—		31,645,040

Explain how and when the Debtor intends to pay any past-due postpetition debts.

Post petition debts will be paid with operating cash flow and or post petition financing.

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 10 of 20

MOR-5


In re: HORSEHEAD HOLDING CORP				Case No. 16-10287, 288, 289, 290, 291
Debtor				Reporting Period: July 1 - 31, 2016

ACCOUNTS RECEIVABLE RECONCILIATION AND AGING


Accounts Receivable Reconciliation	HH Corp			HMP			Inmetco			Zochem
Total Accounts Receivable at the beginning of the reporting period		12,891,620			1,681,419			4,659,529			18,473,471

+ Amounts billed during the period		13,610,594			675,136			2,294,414			9,516,971
- Amounts collected during the period		(14,134,463	)		(1,209,949	)		(2,722,006	)		(10,564,331	)

Total Accounts Receivable at the end of the reporting period		12,367,752			1,146,606			4,231,937			17,426,112



Accounts Receivable Aging
0 - 30 days old		9,042,815			1,090,767			2,249,697			17,393,578
31 - 60 days old		928,936			—			1,630,694			32,503
61 - 90 days old		879,261			—			225,067			(1,417	)
91+ days old		1,516,740			55,839			126,480			1,448

Total Accounts Receivable		12,367,752			1,146,606			4,231,937			17,426,112

Amount considered uncollectible (Bad Debt)		(341,387	)					(70,974	)		(20,000	)
Accounts Receivable (Net)		12,026,365			1,146,606			4,160,963			17,406,112

DEBTOR QUESTIONNAIRE


Must be completed each month		Yes	No
1.	Have any assets been sold or transferred outside the normal course of business this reporting period? If yes, provide an explanation below.		x

2.	Have any funds been disbursed from any account other than a debtor in possession account this reporting period? If yes, provide an explanation below.		x

3.	Have all postpetition tax returns been timely filed? If no, provide an explanation below.	x

4.	Are workers compensation, general liability and other necessary insurance coverages in effect? If no, provide an explanation below.	x

5.	Has any bank account been opened during the reporting period? If yes, provide documentation identifying the opened account(s). If an investment account has been opened provide the required documentation pursuant to the Delaware Local Rule 4001-3.		x

FORM MOR-5

(04/07)

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 11 of 20



4955 STEUBENVILLE PIKE
SUITE 405		P 724.774.1020
PITTSBURGH, PA 15205 WWW.HORSEHEAD.NET		F 412.788.1812

August 22, 2016

Office of the United States Trustee

844 King Street, Suite 2207, Lockbox 35

Wilmington, DE 19801

Attn: Timothy J. Fox

Subject: Declaration Regarding Bank Reconciliation and Bank Statements

Horsehead Holding Corp. and certain of its affiliates (the “Debtors”), hereby submit this declaration regarding providing bank statements in lieu of providing bank account reconciliations.

The Debtors have performed all bank account reconciliations in the ordinary course of business. Copies of bank account statements and cash disbursement journals are available for inspection upon request by the United States Trustee’s Office.

Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge and belief.



/s/ Timothy D. Boates
Name:		Timothy Boates
Position:		Chief Restructuring Officer

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 12 of 20

COMPLIANCE CERTIFICATE

For the Period From February 2, 2016 to July 31, 2016 (“Test Period”)

The undersigned hereby certifies that he/she is the Vice President & Chief Financial Officer of Horsehead Corporation, company organized under the laws of the State of Delaware (“Horsehead”), the Vice President & Chief Financial Officer of The International Metals Reclamation Company, LLC, a limited liability company organized under the laws of the State of Delaware (“INMETCO”), the Vice President & Chief Financial Officer of Horsehead Metal Products, LLC, a limited liability company organized under the laws of the State of North Carolina (“HMP”), the Vice President & Chief Financial Officer of Zochem Inc., a corporation incorporated pursuant to the Canada Business Corporations Act (“Zochem”) and the Vice President & Chief Financial Officer of Horsehead Holding Corp., a corporation organized under the laws of the State of Delaware (“Horsehead Holding” and, together with Horsehead INMETCO, HMP and Zochem, each a “Borrower” and, collectively, the “Borrowers”), and that as such he/she is authorized to execute this certificate on behalf of each Borrower. With reference to the Senior Secured Superpriority Debtor-in-Possession Credit, Security and Guaranty Agreement dated as of February 8, 2016 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Borrowers, the guarantors party thereto from time to time Cantor Fitzgerald Securities, as Administrative Agent and the lenders party thereto from time to time, the Borrowers represent and warrants as follows (each capitalized term used herein having the same meaning given to it in the Credit Agreement unless otherwise specified):

The representations and warranties of the Borrowers contained in Article IV of the Credit Agreement and in the Loan Documents are true and correct in all material respects at and as of the time of delivery hereof as if made on and as of the date hereof, except to the extent such representations and warranties are expressly limited to an earlier date;

No Default or Event of Default has occurred that has not otherwise been waived.

Attached hereto as Schedule A is a detailed spreadsheet reflecting the calculations and computations necessary to determine whether INMETCO and Zochem are each in compliance with their respective Minimum EBITDA-R requirements, as reflected in this certificate;

There has been no change in the application of GAAP to the financial statements being delivered in connection with this Compliance Certificate since the Effective Date.

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 13 of 20

As of the last day of the Test Period the following statements, amounts, and calculations were true and correct:

Section 6.21(b)(i) - Minimum EBITDA-R for INMETCO.


(A) Adjusted EBITDA-R ⁼ (i) + [(ii) + (iii) + (iv) + (v)+(vi)+(vii) + (viii)] Items (ii) - (iv) shall be included to the extent deducted from Consolidated Net Income. =	$	3,832,000

(i) Net Income	$	(79,000	)

(ii) Interest Expense	$	225,000

(iii) provision for income taxes	$	—

(iv) depreciation, amortization	$	1,548,000

(v) unrealized gains and losses on hedge transaction positions, non-cash compensation expenses, one-time charges to Net Income and all other non-cash charges	$	—

(vi) charges, fees, costs, commissions and expenses incurred during such period in connection with the Credit Agreement, the other Loan Documents, the Chapter 11 Cases, any reorganization plan in connection with the Chapter 11 Cases, any exit credit agreements, and any and all transactions contemplated by the foregoing, including the write-off of any receivables, the termination or settlement of executory contracts, professional and accounting costs, fees and expenses, operational restructuring costs, fees and expenses, management incentive, employee retention or similar plans (in each case to the extent such plan is approved by the Bankruptcy Court to the extent required), litigation costs and settlements, asset write-downs, income and gains recorded in connection with the corporate reorganization of such Person and its Subsidiaries ONE TIME FIRE CHARGES RELATING TO INSURANCE CLAIM	$	47,000

(vii) the charges, fees, costs and expenses in connection with, and a pro forma adjustment for actual lost revenues resulting from, a single furnace shutdown during the life of the Facility; provided that, the aggregate amount added pursuant to this clause (vii) shall not exceed $2,000,000 during the life of the Facility	$	1,983,000

(viii) any intercompany charges incurred by Horsehead for administrative services provided to Horsehead Holding and its Subsidiaries	$	108,000

For the applicable EBITDA- TEST PERIOD, has the minimum required EBITDA-R of INMETCO been met? X YES NO

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 14 of 20

Section 6.21 (b)(ii) - Minimum EBITDA-R for ZOCHEM


(A) Adjusted EBITDA-R = (i) + [(ii) + (iii) + (iv) + (v)+(vi)+(vii) + (viii)] Items (ii) - (iv) shall be included to the extent deducted from Consolidated Net Income.	$	3,385,000

(i) Net Income	$	(946,000	)

(ii) Interest Expense	$	1,542,000

(iii) provision for income taxes	$	(284,000	)

(iv) depreciation, amortization	$	1,146,000

(v) unrealized gains and losses on hedge transaction positions, non-cash compensation expenses, one-time charges to Net Income and all other non-cash charges	$	(14,000	)

(vi) charges, fees, costs, commissions and expenses incurred during such period in connection with the Credit Agreement, the other Loan Documents, the Chapter 11 Cases, any reorganization plan in connection with the Chapter 11 Cases, any exit credit agreements, and any and all transactions contemplated by the foregoing, including the write-off of any receivables, the termination or settlement of executory contracts, professional and accounting costs, fees and expenses, operational restructuring costs, fees and expenses, management incentive, employee retention or similar plans (in each case to the extent such plan is approved by the Bankruptcy Court to the extent required), litigation costs and settlements, asset write-downs, income and gains recorded in connection with the corporate reorganization of such Person and its Subsidiaries	$	1,761,000

(vii) any intercompany charges incurred by Horsehead for administrative services provided to Horsehead Holding and its Subsidiaries	$	180,000

(viii) any costs or expenses incurred in connection with the funding of the Canadian Pension Plans	$	—

For the applicable EBITDA- TEST PERIOD, has the minimum required EBITDA-R of ZOCHEM been met? X YES NO

[Signature Page Follows.]

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 15 of 20

IN WITNESS THEREOF, I have hereto signed my name to this Compliance Certificate, in my capacity as a Responsible Officer of the Borrowers and not individually, as of August 15, 2016.


HORSEHEAD CORPORATION

By:		/s/ Timothy D. Boates
Name:		Timothy Boates
Title:		Chief Restructuring Officer

THE INTERNATIONAL METALS RECLAMATION COMPANY, LLC

By:		/s/ Timothy D. Boates
Name:		Timothy Boates
Title:		Chief Restructuring Officer

HORSEHEAD METAL PRODUCTS, LLC

By:		/s/ Timothy D. Boates
Name:		Timothy Boates
Title:		Chief Restructuring Officer

ZOCHEM INC.

By:		/s/ Timothy D. Boates
Name:		Timothy Boates
Title:		Chief Restructuring Officer

HORSEHEAD HOLDING CORP.

By:		/s/ Timothy D. Boates
Name:		Timothy Boates
Title:		Chief Restructuring Officer

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 16 of 20

Horsehead Holding Corp. and Subsidiaries

CONSOLIDATING BALANCE SHEETS

July 31, 2016 (UNAUDITED)


ASSETS	HHC			Horsehead Corporation			Zochem			INMETCO		Eliminations			Consolidated
Current assets
Cash and cash equivalents	$	7,556		$	4,065		$	3,330		$	6,633	$	—		$	21,584
Accounts receivable, net of allowance		384			14,510			18,684			5,738		(624	)		38,692
Inventories, net		—			10,773			11,267			4,811		—			26,851
Prepaid expenses and other current assets		1,504			11,752			2,110			349		(6,973	)		8,742
Deferred income taxes		—			—			—			—		—			—

Total current assets		9,444			41,100			35,391			17,531		(7,597	)		95,869
Property, plant and equip, net		—			194,765			23,893			32,692		—			251,350
Other assets
Intangible assets		—			7,460			83			1,478		—			9,021
Restricted cash		—			7,939			—			—		—			7,939
Investment in and advances to subs		114,579			(666,823	)		12,252			547		539,445			—
Deposits and other		—			650			873			520		—			2,043

Total other assets		114,579			(650,774	)		13,208			2,545		539,445			19,003

Total assets	$	124,023		$	(414,909	)	$	72,492		$	52,768	$	531,848		$	366,222


LIABILITIES AND STOCKHOLDERS’ EQUITY	HHC			Horsehead Corporation			Zochem			INMETCO		Eliminations			Consolidated
Current liabilities
Current maturities of long-term debt	$	205,000		$	26,888		$	—		$	—	$	—		$	231,888
DEBTOR IN POSSESSION FINANCING		—			45,822			18,678			—		—			64,500
Accounts payable		9,113			14,397			1,819			1,735		(418	)		26,646
Accrued expenses		14,350			22,984			668			2,561		(207	)		40,356
Income taxes payable		—			4,237			(950	)		595		(6,973	)		(3,091	)

Total current liabilities		228,463			114,328			20,215			4,891		(7,598	)		360,299
LIABILITIES SUBJECT TO COMPROMISE		142,946			79,188			7,406			4,894		—			234,434
Long-term debt, less current		—			—			—			10,000		(10,000	)		—
Other long-term liabilities		—			13,383			26			1,885		—			15,294
Deferred income taxes		—			—			3,112			—		—			3,112
Commitments and contingencies
Stockholders’ equity
Common Stock		602			—			—			—		—			602
Additional paid-in capital		398,663			16,241			—			29,081		(45,321	)		398,664
Retained earnings		(646,651	)		(638,049	)		41,733			2,017		594,767			(646,183	)

Total stockholders’ equity before noncontroll int		(247,386	)		(621,808	)		41,733			31,098		549,446			(246,917	)

Noncontrolling interest		—			—			—			—		—			—

Total stockholders’ equity		(247,386	)		(621,808	)		41,733			31,098		549,446			(246,917	)

Total liabilities and SE	$	124,023		$	(414,909	)	$	72,492		$	52,768	$	531,848		$	366,222

NOTE: THE JUNE 30, 2016 BALANCES MAY BE ADJUSTED UPON COMPLETION OF THE 2016 1ST AND 2ND QTR REVIEWS AND MAY AFFECT THESE RESULTS

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 17 of 20

Horsehead Holding Corp. and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)


	UNAUDITED Month Ended July 31 2016			UNAUDITED Month ended July 31 2015			UNAUDITED YTD ended July 31 2016			UNAUDITED YTD ended July 31 2015

Net sales of zinc material and other goods	$	21,091		$	28,650		$	147,546		$	210,557
Net sales of nickel based material and other services		2,998			3,766			19,585			28,297
EAF dust service fees		2,849			3,095			22,246			21,599


Net sales		26,938			35,511			189,377			260,453

Cost of sales of zinc material and other goods		19,002			37,545			162,275			220,739
Cost of sales of nickel based material and other services		1,981			2,196			15,399			18,438
Cost of EAF dust services		2,615			2,618			16,878			17,465
Fire related costs		101			—			1,086			—
Insurance claim income		—			—			(1,000	)		—


Cost of sales (excluding deprec and amortiz)		23,699			42,359			194,638			256,642
Depreciation and amortization		2,012			3,850			14,381			30,840
Selling, general and administrative expenses		1,631			2,179			12,225			15,753

Total costs and expenses		27,342			48,388			221,244			303,235

Loss from operations		(404	)		(12,877	)		(31,867	)		(42,782	)

Other income (expense)
Interest expense		(3,122	)		(3,558	)		(21,432	)		(21,786	)
Interest and other income		2			2			7			22
Other income (expense)		(11	)		656			2,924			13,221

Total other income (expense)		(3,131	)		(2,900	)		(18,501	)		(8,543	)

REORGANIZATION ITEMS, NET		(2,848	)		—			(46,629	)		—

Loss before income taxes		(6,383	)		(15,777	)		(96,997	)		(51,325	)
Income tax benefit		143			(5,966	)		(579	)		(19,401	)


NET LOSS	$	(6,526	)	$	(9,811	)	$	(96,418	)	$	(31,924	)

NOTE: THE MARCH 31 AND JUNE 30, 2016 RESULTS MAY BE ADJUSTED UPON COMPLETION OF THE 2016 1ST AND 2ND QTR REVIEWS AND MAY AFFECT THESE RESULTS

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 18 of 20

Horsehead Holding Corp. and Subsidiaries

CONSOLIDATING STATEMENTS OF OPERATIONS

For the month ended July 31, 2016 (UNAUDITED)

(Amounts in thousands, except per share amounts)


	Horsehead Holding Corp.			Horsehead Corporation			INMETCO			Zochem			Elims			Consolidated

Net sales of zinc material and other goods	$	—		$	11,716		$	—		$	9,375		$	—		$	21,091
Net sales of nickel based material and other services		—			—			2,998			—			—			2,998
EAF dust service fees		—			2,979			—			—			(130	)		2,849


Net sales		—			14,695			2,998			9,375			(130	)		26,938

Cost of sales of zinc material and other goods		—			10,456			—			8,546			—			19,002
Cost of sales of nickel based material and other services		—			—			2,111			—			(130	)		1,981
Cost of EAF dust services		—			2,615			—			—			—			2,615
Fire related costs		—			—			101			—			—			101
Insurance claim income		—			—			—			—			—			—


Cost of sales (excluding deprec and amortiz)		—			13,071			2,212			8,546			(130	)		23,699
Depreciation and amortization		—			1,523			290			199			—			2,012
Selling, general and administrative expenses		41			1,219			194			177			—			1,631

Total costs and expenses		41			15,813			2,696			8,922			(130	)		27,342

(Loss) income from operations		(41	)		(1,118	)		302			453			—			(404	)

Equity in (loss) income of subsidiary, net of taxes		(1,313	)		—			—			—			1,313			—

Other income (expense)
Interest expense		(1,944	)		(909	)		(37	)		(251	)		19			(3,122	)
Interest and other income		19			2			—			—			(19	)		2
Other income (expense)		—			6			1			(18	)		—			(11	)

Total other income (expense)		(1,925	)		(901	)		(36	)		(269	)		—			(3,131	)

REORGANIZATION ITEMS, NET		(3,247	)		—			—			399			—			(2,848	)

(Loss) income before income taxes		(6,526	)		(2,019	)		266			583			1,313			(6,383	)
Income tax provision		—			—			—			143			—			143


NET (LOSS) INCOME	$	(6,526	)	$	(2,019	)	$	266		$	440		$	1,313		$	(6,526	)

NOTE: THE MARCH 31 AND JUNE 30, 2016 RESULTS MAY BE ADJUSTED UPON COMPLETION OF THE 2016 1ST AND 2ND QTR REVIEWS AND MAY AFFECT THESE RESULTS

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 19 of 20

Horsehead Holding Corp. and Subsidiaries

CONSOLIDATING STATEMENTS OF OPERATIONS

For the seven months ended July 31, 2016 (UNAUDITED)

(Amounts in thousands, except per share amounts)


	Horsehead Holding Corp.			Horsehead Corporation			INMETCO			Zochem			Elims			Consolidated
Net sales of zinc material and other goods	$	—		$	78,113		$	—		$	69,331		$	102		$	147,546
Net sales of nickel based material and other services		—			—			19,585			—			—			19,585
EAF dust service fees		—			22,902			—			—			(656	)		22,246


Net sales		—			101,015			19,585			69,331			(554	)		189,377

Cost of sales of zinc material and other goods		—			97,835			—			64,338			102			162,275
Cost of sales of nickel based material and other services		—			—			16,055			—			(656	)		15,399
Cost of EAF dust services		—			16,878			—			—			—			16,878
Fire related costs		—			—			1,086			—			—			1,086
Insurance claim income		—			—			(1,000	)		—			—			(1,000	)


Cost of sales (excluding deprec and amortiz)		—			114,713			16,141			64,338			(554	)		194,638
Depreciation and amortization		—			11,249			1,799			1,333			—			14,381
Selling, general and administrative expenses		528			9,271			1,330			1,096			—			12,225

Total costs and expenses		528			135,233			19,270			66,767			(554	)		221,244

(Loss) income from operations		(528	)		(34,218	)		315			2,564			—			(31,867	)

Equity in (loss) income of subsidiary, net of taxes		(51,605	)		—			—			—			51,605			—

Other income (expense)
Interest expense		(13,329	)		(6,824	)		(261	)		(1,636	)		618			(21,432	)
Interest and other income		617			8			—			—			(618	)		7
Other income (expense)		—			3,016			116			(208	)		—			2,924

Total other income (expense)		(12,712	)		(3,800	)		(145	)		(1,844	)		—			(18,501	)

REORGANIZATION ITEMS, NET		(31,573	)		(12,049	)		64			(3,071	)		—			(46,629	)

(Loss) income before income taxes		(96,418	)		(50,067	)		234			(2,351	)		51,605			(96,997	)
Income tax benefit		—			—			—			(579	)		—			(579	)


NET (LOSS) INCOME	$	(96,418	)	$	(50,067	)	$	234		$	(1,772	)	$	51,605		$	(96,418	)

NOTE: THE MARCH 31 AND JUNE 30, 2016 RESULTS MAY BE ADJUSTED UPON COMPLETION OF THE 2016 1ST AND 2ND QTR REVIEWS AND MAY AFFECT THESE RESULTS

Case 16-10287-CSS Doc 1521 Filed 08/22/16 Page 20 of 20

NON-FINANCIAL OPERATING METRICS REPORT


Shipments	Month ended July 31, 2016
Zinc finished product - tons (Z + HH combined)(excludes WOX/Calcine)		5,446
Finished Products Zinc-Contained tons (Z + HH combined) (excludes WOX/Calcine)		4,442
WOX/Calcine shipments combined - tons		14,331
Calcine shipments - tons		10,852
Calcine zinc-contained tons		6,876
Total Zinc-Contained tons (Finished Prod from Z + HH + calcine/WOX)		13,405
Zinc finished product - tons (HH) (excludes WOX/Calcine)		425
Total Zinc Product Zinc - Contained tons (HH) (includes WOX/Calcine)		9,388
EAF dust receipts - tons (HH)		44,032
Nickel remelt alloy shipments - tons (I)		2,439

Net sales realization
Zinc finished products - per lb (Z + HH combined)	$	0.95
Zinc finished products - per lb zinc-contained (Z + HH combined)	$	1.17
Zinc finished products premium - per lb zinc-contained (Z + HH combined)	$	0.18
Zinc Product Shipments - per lb zinc-contained (HH)	$	0.61
LME average zinc price - per lb	$	0.99
LME average nickel price - per lb	$	4.65

Production
Zinc metal production tons (Mooresboro)		—
Mooresboro conversion costs (per lb)	$	—
Recycling facility conversion costs (per lb)	$	0.40

Financial (in 000’s)	UNAUDITED
Net Zinc metal sales excl. intercompany (HH) (excludes brokered)	$	—
Brokered metal sales	$	621
EAFD collection revenue	$	2,979
EAFD collection costs	$	2,615
Zochem adjusted EBITDA - R	$	662
INMETCO adjusted EBITDA - R	$	712


Segment data (3 segments + Corp, elim, other) (in 000’s)
UNAUDITED	Horsehead			Zochem		INMETCO		Corp, Elims & Other			Consolidated
Revenue	$	14,695		$	9,375	$	2,998	$	(130	)	$	26,938
Depreciation & amortization		1,523			199		290		—			2,012
COGS		13,071			8,546		2,212		(130	)		23,699
SG&A		1,219			177		194		41			1,631
Interest expense		909			251		37		1,925			3,122
(Loss) income before income taxes	$	(2,019	)	$	583	$	266	$	(5,213	)	$	(6,383	)

Revenue excl. unrealized non-cash hedge adj and interco. sales	$	14,565		$	9,373	$	2,998	$	—		$	26,936
Unrealized non-cash hedge adj (expense) income	$	—		$	2	$	—	$	—		$	2
Capital expenditures	$	1,652		$	56	$	68	$	—		$	1,776

Horsehead Holding Corp 8-K