MADRID (ICIS)--Swiss-headquartered commodities trader Trafigura is set to control miner and sulphuric acid producer Nyrstar after the Belgian firm went into a restructuring process.
Nyrstar is a major provider of sulphuric acid in Europe and the US.
Under the lock-up agreement with Trafigura, Nyrstar will receive urgent financing facilities.
Current shareholders’ investments, however, will be lost fully or in part.
“The proposed debt restructuring is, we believe, the best possible solution for all stakeholders, despite significant and painful losses incurred,” said Jeremy Weir, Trafigura’s CEO.
“The alternative would have put the future of the Nyrstar Group at imminent risk; causing significant losses to all stakeholders - including the company’s approximately 4,100 employees.”
Weir added that while Nyrstar had had “substantial financial and operational difficulties” over the last few years, he was hopeful its “very solid” industrial operations would allow it overcome the current difficulties.