EVRAZ HIGHVELD: The court application from East Metals and Mastercroft – what they want and why they want it

East Metals and Mastercroft have applied to launch court proceedings against troubled South African company Evraz Highveld Steel & Vanadium aiming to have its business rescue plan declared invalid. Metal Bulletin looks at the reasons for the application.

Highveld went into business rescue proceedings in April and published its business rescue plan on September 16, naming Hong Kong-based International Resources (IRL) as its preferred bidder. The vote in favour of the plan was announced on October 13. East Metals has said it is a “large, if not the largest” creditor of Highveld, with claims of ZAR378.8 million ($27.7 million), while Mastercroft holds 85.1% of Highveld’s issued share capital. East Metals is a major creditor of Highveld, with claims of ZAR378.8 million ($27.7 million), and Mastercroft holds 85.1% of Highveld’s issued share capital. Both are wholly owned subsidiaries of Evraz plc. An affidavit is included as part of the application, signed by Tania Mostert, financial director of Evraz Vametco Holdings (EVH), a producer of vanadium and “affiliate of Evraz plc”, laying out the claims made by East Metals and Mastercroft. Mostert was authorised to conduct the applications to the court...

Published

Claire Hack

October 26, 2015

17:38 GMT

New York