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Mineral Park allowed to spurn $2.79 million Trafigura copper contract
By Kali Hays
New York, May 18 – Mineral Park, Inc. received authorization to reject a 2010 contract agreement with Trafigura AG related to the purchase and delivery of copper concentrate under a Monday order from the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, Mineral Park filed a complaint at the end of April in an attempt to recover $2.79 million owed by Trafigura AG in connection with copper concentrate deliveries and purchase contract payment obligations.
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.
The company claims that Trafigura refuses to pay any of the $2.79 million receivable, contending that the 2010 agreement is a forward contract to which the automatic stay does not apply.
Monday’s order allows Mineral Park to deem the agreement rejected.
In its complaint, Mineral Park requested that Trafigura be ordered to pay the receivable in full and to award sanctions for Trafigura’s alleged violation of the automatic stay, but neither request was specified in the order.
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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