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

Release Date: 03/05/2017 16:47
Code(s): EHS
 
Wrap Text
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 April 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 agreement between the
             Company and ArcelorMittal South Africa Limited was
             concluded during December 2016.
   2.2.      The refurbishment of the Structural Mill has been
             completed.




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  2.3.    An agreement has been concluded for the sale of the
          Structural Mill assets 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.)
  2.4.   Pending transfer, the Structural Mill is being leased to
         the subsidiary and has commenced production, according
         to the contract manufacturing agreement.


  Other Strategic Assets

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


  Employee Payments
  2.6.   Employees have been paid approximately 13% (R 34 980
         725) of the total amount owed to them. The last payment
         to employees was made on 12 April 2017.


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.   Affected Persons will be advised of further updates.




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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


3 May 2017


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




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