Amsterdam-based commodity trader Trafigura Group Pte. Ltd. said on Monday it has entered a "lock-up" agreement with a leading zinc producer from Belgium, Nyrstar N.V., to provide interim funding of $250 million necessary for its restructuring and subsequently take over the company. Additionally, Trafigura will issue other financial instruments of over €550 million in total value "in exchange for the discharge of Nyrstar’s obligations under the Nyrstar bonds and convertible notes."
"Nyrstar has been faced with substantial financial and operational difficulties over the last few years, but it also has very solid industrial and mining operations on which we can build a stable future. The proposed debt restructuring is, we believe, the best possible solution for all stakeholders despite significant and painful losses incurred," said Executive Chairman and CEO of Trafigura, Jeremy Weir.
