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Trafigura Accused of Throttling Nyrstar With Lopsided Deals

Metal News - Published on Wed, 11 Sep 2019

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Commodities trader Trafigura Group Ltd used its influence at Nyrstar NV to undermine the company and unfairly enrich itself, a group of Nyrstar shareholders has alleged. Through its sway on the board and management committee, Trafigura was able to negotiate lopsided contracts that effectively drained cash from Nyrstar since 2016, contributing to the company’s collapse, the shareholders said in a recent lawsuit in Belgium.

Mr Benoit Allemeersch a lawyer representing the company in Belgian court said that “Nyrstar has defended itself in open court against the unsubstantiated allegations made by a small group of shareholders. These claims are nothing new and entirely incorrect.”

Documents related to the case, which include contracts between Nyrstar and Trafigura and an analysis by one of the shareholders, shed light on the complex relationship between the two companies. Before a debt restructuring this year that led to Trafigura taking control of Nyrstar’s assets, the privately held trading house was the company’s biggest shareholder, as well as its main supplier and customer.

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Posted By : Rabi Wangkhem on Wed, 11 Sep 2019
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