EVRAZ HIGHVELD STEEL & VANADIUM LTD - Mapochs Mine business rescue update

Mapochs Mine business rescue update

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”)


MAPOCHS MINE BUSINESS RESCUE UPDATE - REPORT IN TERMS OF SECTION
132(3)(A) OF THE COMPANIES ACT 71 OF 2008


Highveld is the majority shareholder of the Mapochs Mine Proprietary
Limited “(Mapochs” or “the Company” in below report), which declared
business rescue on 20 April 2015.


The Business Rescue Practitioners have prepared a report in terms of
Section 132 (3) (a) of the Companies Act 71 of 2008 (“Act”)(“the
Report”) for submission. The Report is also available on the Company’s
website: http://www.evrazhighveld.co.za/businessrescue.asp


Report 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

Prepared by:

John Lightfoot and John Evans – Joint Business Rescue Practitioners
1.   Introduction
1.1. The Business Rescue Proceedings of the Company did not conclude
     within three months of the date of commencement thereof.
1.2. This report is to be read in conjunction with the previous reports.
1.3. Only actions taken subsequent to the earlier reports are dealt with
     in this report
1.4. Defined terms have the same meaning as ascribed to them in the
     adopted Business Rescue Plan.

2.   Business Rescue Process

2.1. The key timelines:

         EVENT                                    DATE
     1   Business Rescue Plan Published           20 November 2015
     2   Business Rescue Plan (as amended)        30 November 2015
              Adopted
     3   Notice of substantial implementation     2 December 2015
              filed

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3.   Implementation of the Business Rescue Plan
3.1. On 2nd December 2015, the Offeror paid the full Offer Price into
     the Plan Fund and accordingly Substantial Implementation (as
     defined in the Business Rescue Plan) was achieved.
3.2. Due notice was filed with the CIPC. (Copy Attached)

3.3. Henceforth and as provided in the Business Rescue Plan the role of
     the BRP’s is to be carried out by them as Receiver on behalf of the
     Company, IRPL and Creditors, this to implement the remaining and
     outstanding terms of the Business Rescue Plan and as more fully set
     out in it.
4.   Proof of Claims by Creditors
4.1. The adopted Business Rescue Plan provides that all Creditors are to
     lodge their claims on or before 31 January 2016.
4.2. Many Creditors have already submitted Claims. They are not required
     to resubmit them.    A list of Claims received from Creditors to date
     is attached at Annexure A.
4.3. The Receivers will begin the process of adjudicating the Claims
     received.    Creditors will be notified before 31 January 2016 of the
     Receivers acceptance of rejection of their respective Claim(s).
4.4. Rejected claims will be dealt with in terms of paragraph 13 of the
     Business Rescue Plan.
5.   Litigation
In the week preceding the s 151 meeting the following litigation was
     instituted against the Company.

5.1. Court Proceedings instituted by Global Renewable Energy Limited
     (“GRE”):
5.1.1.   On 25 November 2015, one of the unsuccessful bidders in the
         sales process, GRE, applied to the High Court to urgently
         interdict the BRPs from proceeding with the s151 Meeting
         convened for 30 November 2015.
5.1.2.   The application was opposed by the BRPs.
5.1.3.   Before it was heard and on 26 November 2015, the application
         was withdrawn.
5.1.4.   The BRPs / Receivers are now proceeding against GRE to recover
         their legal costs.
5.2. Court Proceedings instituted by East Metals (“EM”) and Mastercroft:


                                                                          2
5.2.1.    On 27 November 2015, EM and Mastecroft instituted an urgent
          application in terms of which they sought inter alia to
          interdict and restrain the Company, Evraz Highveld, the BRPs
          of Highveld and the BRPs from purchasing from creditors of the
          company their claims, making payments envisaged in the Plan,
          waiving any claim in or against the company and waiving any
          right to a dividend or distribution from the company which
          Evraz Highveld would be entitled.
5.2.2.    The application was opposed and the BRPs filed their answering
          affidavit.
5.2.3.    At the hearing EM and Mastercroft removed the matter from the
          roll.
5.2.4.    The BRPs / Receivers will in due course proceed to recover
          legal costs from EM and Mastercroft.


eMalahleni
4 December 2015


J.P. Morgan Equities South Africa (Pty) Ltd.


Sponsor




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