Vol 17 (2020) - Issue 1

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Zinc or Swim? The Restructuring of the Nyrstar Group

Synopsis

In July 2019, the multi-jurisdictional Nyrstar group announced the completion of its complex restructuring, reducing the group’s total indebtedness by over EUR 1 billion and involving:
– the incorporation of English NewCos facilitating the restructuring of Dutch issued high yield bonds and Belgian issued convertible bonds through an English scheme of arrangement;
– the issuance of three new bond instruments;
– the provision of a EUR 160 million new money facility; and
– the transfer of 98% of the operating group to Trafigura.

This article provides an overview of the restructuring and explains why a Chapter 11 process was not a viable option for the Nyrstar group.