Light at the end of the tunnel for creditors

Evraz Highveld Steel and Vanadium business rescue practitioners still hold out hope that the sale of assets will yield better results than liquidation.

“It is the joint business rescue practitioners’ view that proceeding with proposal three will result in a better outcome for all affected persons than in liquidation,” Matuson Associates said in a statement on April 6.

The business rescue proceedings of Evraz Highveld Steel have not been concluded within the three months set out for it.

However, on May 13 the Joint Business Rescue Practitioners Piers Marsden and Daniel Terblanche tabled an update report and there is some good news for creditors.

The claim reconciliation process is nearing completion and creditors are being informed on whether their claim has been accepted and what the quantum of their claims is.
Phase three of the rescue process to wind down this steel giant is in full force. The wind-down plan is designed to generate cash for the company that closed its doors on February 10.
Assets are placed in three categories depending on whether they could be converted into cash, sold as movable assets or sold as operational plants.

The hope is that the wind-down plan will succumb R1.134 billion that will be sufficient to cover all employee severance packages, secure creditors, costs and pay a minimum dividend to creditors within the range contemplated in the plan.

The steel-hub became a victim of a global steel supply surplus when China flooded the market with cheap exports.
All hopes were placed on a purchase agreement by a Chinese company, International Resources Limited (IRL) that never materialised. In addition, Highveld Steel’s agreement with the Commission for Conciliation, Mediation and Arbitration to place its employees on a training layoff scheme was ended.
The result of all this was 1 753 employees who faced a bleak future.

eMalahleni residents are known for caring and standing together. They again proved that this city has a heart that beats for people who needs help.
Food distribution to 300 of their members was quickly organised by Solidarity’s Helping Hand.
This feeding scheme gained momentum as the whole of the country responded to the plea for food.

“From February 19 we distributed 53 tons of food,” said Ms Annamarie van Heerden, chairman of the local Helping Hand branch.

The next food hand-out action is taking place on June 20. The need for blankets is high on their priority list.

“We will be so blessed if someone could donate Christian books, DVD’s or CD’s,” Van Heerden said.

On their wish list are long life milk, coffee, sugar, sanitary ware, toilet paper, shampoo, toothpaste, peanut butter, jam, butter, oil, soya products, mixed vegetables, bully beef, baby products, number one to five nappies and candles.

You can drop your donations at Anjo’s Property Management Services in Stander Street, Wilma Erasmus Physiotherapist in Woltemade Street or the Spurs in Ben Fleur Boulevard Shopping Centre or Highveld Mall.

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