Trafigura Threatened to Deny Nyrstar Key Credit, Adviser Says
- Belgian court orders investigation of Nyrstar acquisition
- Minority investors in Nyrstar allege takeover infringed law
Source: Nyrstar
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Trafigura Group Ltd. threatened in 2018 to block Nyrstar from drawing on a key loan facility, according to a letter from advisers to Nyrstar’s board, accelerating a cash crunch that ultimately led to the trading giant’s takeover of the company.
The alleged threat by Trafigura -- at the time an important lender to Nyrstar -- to withhold the $250 million credit facility will be examined by a Belgian court-appointed panel of experts as part of a wider investigation into the legality of Trafigura’s acquisition of Nyrstar. Minority investors in Nyrstar, Europe’s largest zinc smelter, allege the takeover infringed governance rules and corporate law.