Nyrstar's share price plummeted by more than 57% overnight in one of the biggest one-day declines on record for the global multi-metals company, while a broad restructuring of its debt remains one of the most likely options for it to pursue, according to equity analysts at ABN AMRO Group.
Both Nyrstar's equity and bonds hit an all-time low of ?,?0.52 per share over the afternoon on Monday November 12, plunging through the day and down by more than 90% year-on-year.Belgium-registered Nyrstar's current corporate debt exceeds ?,?700 million ($793 million) due in 2019. And while its debt burden could be relieved by a debt-for-equity swap from Trafigura Group, Nyrstar's majority investor and its second-largest source of credit, it could also erode Trafigura's 25% stake.There are several options for debt restructuring by the company, which is the market leader in global zinc and lead production, but equity analysts at Dutch bank ABN AMRO are advising investors to sell.Other options would probably undermine Nyrstar's financial position. One would be an...