EVRAZ HIGHVELD STEEL & VANADIUM LTD - Report in terms of S 132 (3) (a) of the Companies Act No.71 of 2008

Report in terms of S 132 (3) (a) of the Companies Act No.71 of 2008

EVRAZ Highveld Steel and Vanadium Limited
(Incorporated in the Republic of South Africa)
(Registration No: 1960/001900/06)
Share code: EHS ISIN: ZAE000146171
(“Highveld” or “the Company”)



REPORT IN TERMS OF S 132(3)(a) OF THE COMPANIES ACT NO.71 OF 2008

Shareholders are advised that the Joint Business Rescue Practitioners
have prepared a business rescue update report for February 2017 to the
Companies    and   Intellectual    Property   Commission       and    to       all    Affected
Persons in terms of Section 132(3) (a) of the Companies Act, 71 of
2008.



The Report


The content of the Report is as follows:

1. Introduction
   1.1.     The business rescue proceedings of the Company have not been
            concluded   within    three   months    of   the   date       of   commencement
            thereof, and therefore this update report is being tabled in
            terms of section 132(3)(a) of the Companies Act 71 of 2008
            (“Act”).
   1.2.     It is important to read this report in conjunction with the
            Business Rescue Plan (“Plan”) and previous update reports.


2. Update on Business Rescue Proceedings
   Structural Mill:
   2.1.      The   contract   manufacturing        and   option      to    buy       agreement
             between the Company and ArcelorMittal South Africa Limited
             was concluded during December 2016.
   2.2.      The refurbishment of the Structural Mill is expected to be
             completed by April 2017.
   2.3.      Once the refurbishment has been completed, the Structural
             Mill assets will be sold to a wholly owned subsidiary of the
             Company (please refer to the last presentation to the general
             meeting of affected persons which details the structure.)



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   2.4.      It   is    expected   that   the    Structural        Mill   will     commence
             production immediately thereafter.
   Other Strategic Assets

   2.5.      The joint BRPs continue to engage with buyers on several of
             the Company’s strategic assets.
   Update Meeting:

   2.6.   A general meeting of affected persons was held on 24 February
          2017     to   provide    affected     persons     with    an    update    on   the
          business rescue proceedings and to discuss the way forward.
          The     presentation     presented    will   be    made    available      on   the
          Company’s website.


3. Proof of Claims
   3.1.       The claims submission period has closed.
   3.2.   Creditors are still being informed on a) whether their claim
          has been accepted and b) the quantum of such claim.
   3.3.   Please refer any questions or queries relating to your claim
          to evrazhighveld@matusonassociates.co.za


4. Litigation
   4.1.   The papers filed to date in the application and action against
          Air Liquide (Pty) Limited are available on the Company’s
          website.
   4.2.   Air Liquide has issued an application for substituted service
          as well as a joinder application.            These papers are also
          available on the Company’s website.
   4.3.       Affected Persons will be advised of further updates.


5. Suggested Way Forward
  In terms of the Plan, the business rescue is proceeding in accordance
  with Proposal 3, i.e. the wind-down of the Company.

6. Conclusion
   It is the joint BRPs’ view that Proposal 3 will result in a better
   outcome for all affected persons than a liquidation.


eMalahleni



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2 March 2017
J.P. Morgan Equities South Africa (Pty) Ltd.
Sponsor




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