EVRAZ HIGHVELD STEEL & VANADIUM LTD - Report in terms of S132 (3) (a) of the Companies Act No.71 of 2008

Report in terms of S132 (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 August 2016 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
   2.1.      The joint BRPs are proceeding in terms of the wind-down
             contemplated in Proposal 3 of the Plan.
   2.2.      A further general meeting of affected persons was convened
             on 11 July 2016 to provide affected persons with an update
             on the business rescue proceedings and to discuss the way
             forward. The presentation can be found on the Company’s
             website (www.evrazhighveld.co.za).




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3. Proof of Claims
   3.1.      The claims submission period has closed.
   3.2.      Creditors are currently 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.      On 4 August 2016, the joint BRPs issued an application in
             terms whereof the BRPs seek to, inter alia, cancel certain
             obligations imposed on Highveld in terms of a supply
             agreement concluded between the Company and Air Liquide
             (Pty) Ltd (“Air Liquide”), as contemplated in terms of
             section 136(2)(b) of the Companies Act.
   4.2.      Air Liquide has opposed the application.
   4.3.      The joint BRPs will advise affected persons of further
             updates.   In the interim, a copy of the application is
             available on the Company’s website.



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
18 August 2016


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


Sponsor




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