Statement re EVRAZ Highveld Steel and Vanadium
Recent public statements made by the Business Rescue Practitioners of EVRAZ Highveld Steel and Vanadium («Highveld Steel») appear to suggest that EVRAZ is engaged in a course of action which is «clearly designed to frustrate the business rescue process». This is denied by EVRAZ.
EVRAZ wishes to place on record that it remains fully supportive of the business rescue process and any sustainable endeavor to rescue the business of Highveld Steel in the collective interest of all creditors, employees as well as the South African steel manufacturing industry. EVRAZ stands for saving jobs and resuming operations at Highveld Steel.
In this context EVRAZ initiated and has strongly supported the business rescue process for Highveld Steel up until the submission of the current business rescue plan.
EVRAZ expected the Business Rescue Practitioners to put together and present to affected persons a plan that would reflect fair value for the interests of creditors, employees and the steel industry overall.
What transpired however is that the Business Rescue Practitioners did not utilize abundant time and resources to search for viable solutions and to produce a sustainable plan that would lead to resuming operations at Highveld Steel.
It is the considered view of EVRAZ that the plan currently put forward by the Business Rescue Practitioners gives no assurance of a successful resumption in future trading and substantive employment by Highveld Steel nor does it offer creditors a better return than they are likely to receive even in a liquidation scenario, which EVRAZ strongly opposes.
This only plan was put forward and suggested for voting at the creditors’ meeting on 13 October 2015. No viable alternatives have been forthcoming from the Business Rescue Practitioners, who seem to be quite irrationally driven to implement the plan, despite the lack of proper disclosure to creditors and the blatant violation of creditor voting interests on seeking its approval.
EVRAZ stands for rescuing the Highveld Steel business, not selling it by all means. With the business rescue plan being neither sustainable, nor transparent and the interests of employees and creditors violated, the situation causes concern and encourages EVRAZ to institute court proceedings to set the present plan aside.
For further information:
London: +44 207 832 8998 Moscow: +7 495 937 6871
London: +44 207 832 8990 Moscow: +7 495 232 1370