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Rarely do investors get a chance to have a say on bankruptcy proceedings a move that over the years has led to most of them losing a big chunk of their investments, if not all. However, that is slowly changing as shareholders in the energy, coal and other commodities sector move to make their voice heard. Shareholders of Horsehead Holding Corp. (OTCMKTS:ZINCQ) are among a bunch of investors looking to recoup a substantial amount of their investments as the company battles Chapter 11 in the industry.

 Asset Valuation Stand Off

 A fierce battle over how the bankruptcy restructuring should proceed has already ensued as Horsehead shareholders accuse the management of lowballing the company’s assets. Since the price of Zinc has risen from lows when the company filed for bankruptcy in February, investors believe the company’s assets should be worth more, than what creditors are quoting.

Investors have also taken the management to task for stating that the company’s assets are worth $280 million yet at the beginning of the year, they were worth more than $1 billion. A KPMG report commissioned by shareholders values the assets at over $1.1 billion another indication of something fishy on the part of the management team valuation.

 Class Action Push

 Shareholders now fear that the company is planning to let creditors gain control at a bargain price in total disregard of their interest. It appears shareholders will have to turn to class action lawsuits if they are to have a chance of recouping some part of their investments in the company. Under the proposed plan, the Zinc producer is planning to eliminate up to $427 million in pre-bankruptcy debt and emerge out of Chapter 11 under the control of note holders.

A bankruptcy judge rejecting allegations that Horsehead was unfairly wiping out their investment with its restructuring plan means shareholders might have to look elsewhere. A number of law firms led by The Wagner Firm, Lundin Law Pc and have already opened investigations into Horsehead Holding Corp. (OTCMKTS:ZINCQ) providing hope as investors look to prevent their investments from being wiped out.

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Steve Kanaval: Portfolio Manager/Writer/ Market Analyst Steve began his career in the Trading Pits in Chicago making markets at the Chicago Mercantile Exchange (NYSE:CME) the Chicago Board of Trade and the CBOE in the early 80’s. He ran the Morgan Stanley Derivative Prop Trading for the firm specializing in Index Arbitrage. He continued his career as a Trader/Portfolio Manager for multiple Hedge Funds during the Internet Boom of the 90’s managing large portfolios. Steve is known as an expert in MicroCap Technology Stocks and the emerging Digital Currency markets as a Portfolio Manager for his Family Office. Steve has managed portfolio’s in volatile asset classes for 3 decades as a commodity trader, hedge fund manager and digital currency trader and miner. Steve publishes his views on the asset classes in a public forum and has published more than 10,000 articles simplifying these complex and volatile assets for readers. His work is published on multiple sites including Bloomberg, Equities.com, Hacked.com, CryptoCurrencyNews as a paid contributor. His work includes research, journalism and archived video on important market volatility related to stocks, digital currency and other volatile misunderstood asset classes. He offers a humorous, unique insight and the related back stories and drivers for readers interested in volatility and emerging market assets. Full disclosure Steve is long 25 digital currencies and sits on the board of multiple public companies involved in digital currencies, and owns shares in these companies from time to time.

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