South Africa – Evraz Highveld Steel and Vanadium, on Tuesday (14 April 2015) announced that it has commenced voluntary business rescue proceedings in terms of section 129 of the Companies Act.
The company said that it does not have adequate funding to meet its obligations for the short term. This is primarily as a result of historical operational difficulties and sustained financial losses within a capital constrained operating environment, despite the current operational stability achieved through the recent implementation of Evraz operational turnaround plan.
The company’s financial position has further been negatively impacted by weakened global steel and vanadium markets and a severe reduction of domestic steel demand.
The board believes it will be in the best interest of Evraz and its stakeholders to commence with voluntary business rescue proceedings, as it will afford the business practitioners, Messers Daniel Terblanche and Piers Marsden, in this case the opportunity to consider the continued implementation of the turnaround plan and successfully re-establish the company.
Evraz has also been granted to suspend the listing of its shares with immediate effect on the JSE.