Nyrstar provides an update with regards to recent litigation and FSMA investigations - Seite 2

2. FSMA’s continued investigation of the Company

The Company notes that a press statement was issued by the FSMA on 29 May 2020 stating that it was to broaden its investigation into the Company. As stated in the FSMA’s press release, the Management Committee of the FSMA decided in September 2019 to commence an investigation of the provision of information by the Company. The FSMA has noted that this initial investigation focused on the information provided concerning the commercial relationship with Trafigura. The broadened investigation announced by the FSMA on 29 May 2020 will now include the provision of information about the expected profit contribution from and the total costs for the Port Pirie smelter in Australia, and of information about the Company’s solvency and liquidity position at the end of 2018.

The Company believes that it has at all times properly disclosed the information required by the relevant financial regulations and legislation and will continue to fully cooperate with the investigation.

3. Writ of summons issued among others against the Company and the Board of Directors

The Company advises that on Friday 29 May 2020 a group of minority shareholders of the Company, including Mr. Kris Vansanten,  issued among others the Company and its directors with a writ of summons to appear before the Turnhout commercial court in Antwerp, Belgium. This writ follows a notice of default that was received by the directors and certain senior managers of the Company on 17 March 2020. The plaintiffs in this writ of summons on the merits bring the following liability claims:

1. a derivative liability claim on behalf of the Company against among others the incumbent directors for shortcomings in their management as well as violations of the Companies Code and the articles of association of Nyrstar. The plaintiffs demand that the defendants be ordered jointly and severally to pay the Company damages provisionally estimated at least at EUR 982 million.
2. a direct liability claim against among others the incumbent directors for errors as a result of which the applicants (allegedly) suffered individual damages. On this basis, the plaintiffs claim personal compensation estimated provisionally at EUR 1.
3. A liability claim against the Company to cover any of the plaintiffs’ expenses that will not be reimbursed by the other defendants.

The Company and its Board of Directors strongly refute the claims in the writ of summons and note that they will strongly defend themselves against such claims in the court process.