Evraz Highveld Steel and Vanadium Still Has Reasonable Prospect for Business Rescue

- August 6th, 2015

Engineering News reported that despite missing an initial three-month deadline for its business rescue proceedings, Evraz Highveld Steel and Vanadium (JSE:EHS) said there is a “reasonable prospect” that the company will be rescued in accordance with the Companies’ Creditors Arrangement Act (CCAA).

Engineering News reported that despite missing an initial three-month deadline for its business rescue proceedings, Evraz Highveld Steel and Vanadium (JSE:EHS) said there is a “reasonable prospect” that the company will be rescued in accordance with the Companies’ Creditors Arrangement Act (CCAA).
As quoted in the market news:

In a report submitted to the Companies and Intellectual Property Commission on Wednesday, Matuson & Associates director Piers Marsden and Mazars director Daniel Terblanche outlined that they had, since being appointed BRPs in the matter in April, undertaken several meetings with the board, employees and creditors to identify areas in which “crucial” actions could be taken.
Despite sending a reminder to creditors in July to submit claims, the duo said there remained a large number of claims outstanding, with the number of claims received to date amounting to some R1.2-billion.
All claims were currently being reviewed by the BRPs and compared with the company’s ledger. Independent auditing firm KPMG was, meanwhile, in the process of completing a liquidation dividend calculation, which would be included in the business rescue plan and compared with the proposed business rescue dividend.
The duo had also met with representatives of the departments of Economic Development, Trade and Industry, Environmental Affairs, Water and Sanitation, Public Enterises and Treasury, as well as engaged in talks with various representative trade unions, including the National Union of Metalworkers of South Africa and Solidarity.

Click here to read the full Engineering News report.

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