EVRAZ HIGHVELD STEEL & VANADIUM LTD - Notice of court proceedings

Release Date: 15/03/2017 11:07
Code(s): EHS
 
Wrap Text
Notice of court  proceedings

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”)
EVRAZ HIGHVELD STEEL AND VANADIUM LIMITED (In Business Rescue)
Registration No: 1960/001900/06


NOTICE OF COURT PROCEEDINGS AGAINST INTER ALIA EVRAZ HIGHVELD STEEL AND
VANADIUM LIMITED (IN BUSINESS RESCUE) (“Highveld”), THE BUSINESS RESCUE
PRACTITIONERS OF HIGHVELD (“the BRPs”) AND AFFECTED PERSONS


1.     The BRPs of Highveld have instituted court proceedings against
       Air Liquide (Pty) Limited (“Air Liquide”) under case number
       26911/2016 in the High Court of South Africa, Gauteng Local
       Division, Johannesburg     in which they seek, inter alia, to
       cancel certain obligations imposed on Highveld in terms of a
       Supply Agreement entered into between Highveld and Air Liquide
       and declaratory relief pertaining to limitations on Air
       Liquide’s damages claim against Highveld as a consequence of
       such cancellation.


2.     Air Liquide opposes the relief, and intends to bring a counter-
       application against the BRPs, Highveld and affected persons for
       a declaration that, inter alia:
       2.1.   Air Liquide is not bound by paragraph 24.2 of the
              Business Rescue Plan;
       2.2.   Clause 20.12 of the Supply Agreement does not impose any
              limitation on Air Liquide’s claim for damages against
              Highveld arising from a cancellation of Highveld’s
              obligations under the Supply Agreement by the Court in
              terms of section 136(2)(b) of the Companies Act 71 of
              2008;
       2.3.   Air Liquide is entitled and the BRPs are obliged to
              accept a claim to the full extent of Air Liquide’s duly
              mitigated damages, discounted to a present day value, in
              the Business Rescue Proceedings and any dispute regarding
              the quantification thereof is to be determined in



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                  accordance with the dispute resolution mechanism
                  contained in paragraph 38 of the Business Rescue Plan;
                  and
         2.4.     Air Liquide is entitled and the BRPs are directed to pay
                  to Air Liquide the same proportionate dividend as will be
                  paid to all other concurrent creditors in the Business
                  Rescue Proceedings, calculated on the full amount of Air
                  Liquide’s damages claim;
         2.5.     Air Liquide is entitled to receive a supply of water
                  according to its requirements from the Highveld Steel
                  water pipeline and to have the waste water managed by
                  Highveld Steel’s waste water treatment facility, on
                  reasonable commercial terms and to that end to be
                  included in any agreement concluded by Highveld with any
                  third party or parties concerning the ownership and
                  continued operation of the pipeline and waste water
                  treatment facility.


3.       Applications have been launched by Air Liquide to join all
         affected persons to the court proceedings for purposes of its
         counter-claim and for substituted service.


4.       A full copy of the papers in the main application, the counter-
         application and the applications to join affected persons and
         for substituted service are available on the website of
         Highveld, www.evrazhighveld.co.za, and upon request from Van
         Hulsteyns Attorneys, the attorneys representing Air Liquide, who
         can be contacted as follows:


Van Hulsteyns Attorneys
Ref: Mr Andrew Legg / Mr Daniel Raath
Telephone: 011 523 5300
Email:          andrew@vhlaw.co.za
daniel@vhlaw.co.za


eMalahleni
15 March 2017
J.P. Morgan Equities South Africa (Pty) Ltd.



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