Evraz Highveld Steel and Vanadium-linked companies East Metals and Mastercroft instituted court proceedings against Highveld, the joint business rescue practitioners of Highveld and several other affected persons of Highveld.
East Metals and Mastercroft have approached the High Court to have the business rescue plan of Highveld declared invalid and have the vote, which took place at the meeting on 13 October 2015, in terms of which the business rescue plan was adopted, also declared invalid and set aside.
At the meeting, the creditors of Highveld voted in favour of the business rescue plan whereby the company avoided liquidation and remained in business.
Highveld and the business rescue practitioners have made clear their intention to oppose the application.
Besides the challenge from East Metals and Mastercroft, the rival bidder to that of successful bidder International Resources Limited had also sought legal action. Global Renewable Energy had sought a court interdict preventing the creditors to vote on the business rescue plan, the application of which was however set aside.
Evraz Highveld Steel and Vanadium began voluntary business rescue in April this year citing a lack of adequate funding to meet its obligations for the short term.