Nyrstar to propose loss absorption solution at a later stage after unmet EGM quorum
Amid Euronext Brussels-listed base metals miner Nyrstar facing legal scrutiny in Antwerp, the company held an extraordinary shareholders' meeting (EGM) on June 30, which included an agenda item relating to the absorption of losses through a decrease of legal reserve, issue premiums and capital.
The purpose of this agenda item was to reduce the company’s capital to absorb the losses as the company carries material accumulated losses on its balance sheet.
The Nyrstar board proposed to absorb part of such losses against the legal reserve, the share premium and the capital. Such operation is accounting technical in nature and would not have changed the company’s underlying financial situation or total net assets.
The attendance quorum required for this agenda item was not met and the board informed the market by press release on July 1 that it would consider in due course whether and when it would hold a second EGM to deliberate on this item.
Since the relevant agenda item concerned a technical accounting operation, the board has decided to not convene a separate second EGM for this agenda item in isolation. It will consider to reiterate this proposal at a later moment in time.
Nyrstar was placed under suspicion of alleged forgery, the use of false annual accounts and the misuse of corporate assets by the examining magistrate's office in Antwerp on June 8.
Nyrstar owns one of the world’s largest multi-metal smelters processing lead, silver, zinc fume and copper matte, in South Australia. The company also has a zinc smelting operation close to its headquarters in the Netherlands, and a historic zinc refining plant in France.
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