The troubled South African company carried out a “transparent sales process” through its business rescue practitioners (BRPs) over three months to secure a suitable investor.
IRL met the conditions of the process, Highveld said, and made a $10 million payment into escrow.
Highveld went into business rescue on April 13, and has also published its delayed business rescue plan for the turnaround of the company.
IRL plans to put more than ZAR1 billion ($74.2 million) of working capital into Highveld, after the implementation of the proposed transaction, “to upgrade the steel plant and to ramp up production levels”.
Moreover, IRL offered to pay a total of ZAR350 million to settle Highveld’s debts with its creditors, as of the date of the beginning of business rescue.
Payment will be made in two tranches with ZAR234 million payable on the date of implementation of the proposed deal, and ZAR116 million payable on...