UPDATE 1-Trafigura Group set to take control of Nyrstar

(Adds details on plan)

April 15 (Reuters) - Belgian metals and mining company Nyrstar’s major shareholder Trafigura Group is set to take control of the company as part of a recapitalisation plan, Nyrstar said on Monday.

Nyrstar said it would sell its operating group to a newly incorporated subsidiary, NewCo. As part of its recapitalisation, commodities trader Trafigura will be issued 98 percent share capital of NewCo.

Trafigura will provide up to $250 million of secured financing to Nyrstar in order to keep its operations afloat in the interim period, Trafigura said here in a separate statement.

“Nyrstar has been faced with substantial financial and operational difficulties over the last few years, but it also has very solid industrial and mining operations on which we can build a stable future,” Trafigura Chief Executive Officer Jeremy Weir said.

Trafigura said the financing would be in addition to the $650 million working capital facility granted to Nyrstar in November.

Rating agency S&P downgraded Nyrstar’s bonds last month after the miner deferred payment of coupons due on its 2019 and 2024 bonds as it held restructuring talks with shareholders. (Reporting by Ishita Chigilli Palli and Philip George in Bengaluru; Additional reporting by Zuzanna Szymanska in Gdynia; Editing by Gopakumar Warrier)