Horsehead Holding Corporation's recent Chapter 11 bankruptcy filing will have no impact on its Palmerton plant, according to company officials.

The Pittsburgh-based zinc producer received initial court approval for $90 million "debtor-in-possession" financing to keep the company operating during the early portion of the case.According to court filings, the company owes at least $544 million to creditors but has only $1.1 million in cash.Horsehead employs just over 700 people, 110 of whom work in Palmerton."The Palmerton plant continues to operate without interruption in service to our customers," said Ali Alavi, Horsehead senior vice president, corporate and environmental affairs."We idled our Mooresboro, North Carolina, plant within the past two weeks, which affected approximately 200 employees."A depressed zinc price, which recently has languished near its seven- year low and the company's current liquidity situation, were factors in the decision to idle its Mooresboro facility, which broke ground in 2011.The Palmerton facility produces concentrated zinc material in three Waelz kilns, powder metal in zinc alloys and operates Horsehead's only calcining kiln.The company missed a $1.9 million interest payment in January on secure notes due in 2017."The actions represent an important step that we believe will allow us to restructure the company's balance sheet for the long-term," said Jim Hensler, president and chief executive officer."Filing for Chapter 11 protection is the best available option to preserve stakeholder value. We intend to emerge with increased financial flexibility and a capital structure that will enable us to invest in growing our business."Horsehead plans to file a reorganization plan with the U.S. Bankruptcy Court for the District of Delaware by March 13, receive approval by May 27 and complete the reorganization plan by June 11.