The Business Rescue Practitioners of Evraz Highveld (“Highveld”) today provided an update on the Business Rescue Process which commenced on 14 April 2015. In this update the practitioners noted the good progress that has been made in restructuring the company to stand it in good stead for future sustainability. The practitioners also informed the market that the preferred bidder, IRL who was to buy the operation, has not met the required conditions as at the deadline of 31 January 2016.

Speaking on the Business Rescue Process, practitioner Piers Marsden said: “We are encouraged by the process that has been made within the business. Our view remains that there is a reasonable prospect of Highveld being rescued given these successful interventions. Government and our trade unions have also been extremely supportive throughout the period, most recently with the implementation of the Training Layoff Scheme which buffers the company’s employees for a 6 month period. In addition, the company has gained further support by the International Trade Administration Commission of South Africa, which increased the structural steel import duty to protect the industry.”

He adds “We will continue in our efforts to rescue the business. The best case scenario would be for the business to be sold as a going concern, given its importance in the local economy.”



Issued by Brunswick South Africa on behalf of Evraz Highveld