Trafigura Says Nyrstar Rescue Only Option as Banks Cut Lines (1)

Nyrstar was on the “brink of bankruptcy” in late 2018, leaving the zinc producer with little option but to accept a controversial rescue package from Trafigura Group.

That’s the view of Trafigura Chief Financial Officer Christophe Salmon as Nyrstar’s minority shareholders prepare to sue the commodity-trading giant.

Those investors allege Trafigura used its position as the company’s biggest shareholder to force Nyrstar into unfavorable commercial contracts that contributed to a liquidity crisis. The resulting restructuring could have been avoided if Nyrstar had called on existing sources of funding from Trafigura and various banks, they say.

Regulators in Belgium are ...