Mineral Park sues Trafigura for payment of $2.79 million receivable

By Caroline Salls

Pittsburgh, April 23 – Mineral Park, Inc. filed a complaint Wednesday in an attempt to recover $2.79 million owed by Trafigura AG in connection with copper concentrate deliveries and purchase contract payment obligations, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Mineral Park said Trafigura issued a notice of default on Jan. 7 based on Mineral Park’s inability to pay debts as they fall due and the company’s bankruptcy filing.

As a result of the alleged default, Trafigura said it would withhold payments due to Mineral Park until the defaults have been cured, suspend performance of its obligations under the purchase contract until the defaults have been cured and set off any and all amounts Mineral Park owes to Trafigura under the purchase contract.

According to the complaint, Trafigura refuses to pay any of the $2.79 million receivable, contending that the agreement is a forward contract to which the automatic stay does not apply.

As a result, Trafigura claims it may set off the receivable against unliquidated damages arising from Mineral Park’s nonperformance.

In addition, Trafigura issued a notice of contract termination date earlier this month, claiming it has elected to terminate the contract because of Mineral Park’s insolvency or financial condition as of the date of the notice.

Mineral Park said it began directing shipments of copper concentrate to a new buyer under a new contract on Jan. 15, but that contract “contains less favorable terms to the estate” than the Trafigura deal.

In addition to ordering payment of the receivable, Mineral Park is asking the court to award sanctions for Trafigura’s alleged violation of the automatic stay and rule that Trafigura’s obligation to pay the receivable amount is not subject to any contractual or equitable defenses, including setoff.

Mineral Park is a subsidiary of Vancouver, B.C.-based copper mining company Mercator Minerals Ltd. The company filed for bankruptcy on Aug. 25, 2014 under Chapter 11 case number 14-11996.

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