REFILE-Talvivaara's top creditor withdraws support for reorganisation

Tue Nov 26, 2013 9:01am EST
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* Nyrstar has withdrawn support for Talvivaara overhaul

* Analyst sees the miner's debt restructuring uncertain

* Creditors include Nordea, Finnvera and Varma

* Talvivaara shares fall 5 pct

By Jussi Rosendahl

HELSINKI, Nov 26 (Reuters) - Indebted Finnish miner Talvivaara said on Tuesday its biggest creditor, zinc producer Nyrstar, has withdrawn support for its court application for a corporate restructuring, prompting the court to ask for more information.

Talvivaara, hit by falling nickel prices and chronic production problems, earlier this month halted operations and petitioned the Espoo District Court near Helsinki for a court-supervised reorganisation and warned it might face bankruptcy if the process failed.

But the court on Tuesday said it wanted the company to provide more information and Talvivaara later confirmed that Nyrstar, the world's largest zinc producer which had contracted to take Talvivaara's future output of zinc concentrate, had withdrawn its support.   Continued...