Creditors of troubled South African company Evraz Highveld Steel and Vanadium have voted in favour of the business rescue plan for the company.
Highveld has been in business rescue proceedings since April, along with its Mapochs Mine, and on Tuesday October 13, the creditors voted in favour of the plan put forwarded in September to avoid liquidation and remains in business.
The plan recommended that creditors accept the bid to purchase the asset, made by Hong Kong-based “major metals company” International Resources Limited (IRL).
“This is a great result for all Highveld stakeholders, including creditors, shareholders, employees, suppliers and the community as a whole,” joint business rescue practitioner Piers Marsden said in a statement. He was speaking at a stakeholder meeting at Highveld’s operations in eMalahleni on Tuesday.
“Importantly, a number of amendments were made to the plan, including preferential treatment of existing suppliers. In addition the business rescue plan provides for a controlled wind down should the IRL offer not be consummated, which is a significantly better result than liquidation.”
Metal Bulletin will look in-depth at the amendments to the plan and the conditions precedent in ensuing articles.
Claire Hack
chack@metalbulletin.com
Twitter: @clairehack_mb