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

Release Date: 30/05/2017 08:45
Code(s): EHS
Wrap Text
Report in terms of S 132 (3) 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”)


Shareholders are advised that the Joint Business Rescue Practitioners
have prepared a business rescue update report for May 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

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
   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.
   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. Update Meeting:
   3.1. A further general meeting of affected persons has been convened
          for 10h00 on 20 June 2017 at the offices of Edward Nathan
          Sonnenbergs Inc., 150 West Street, Sandton, to provide affected
          persons with an update on the business rescue proceedings and
          to discuss the way forward.

4. Proof of Claims
   4.1.  The claims submission period has closed.
   4.2. Creditors are still being informed on a) whether their claim
          has been accepted and b) the quantum of such claim.
   4.3. Please refer any questions or queries relating to your claim to

5. Litigation
   5.1.    The papers filed to date in the application and action against
           Air Liquide (Pty) Limited are available on the Company’s
   5.2.      Affected Persons will be advised of further updates.

6. 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.

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


30 May 2017

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


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