Embattled Evraz Highveld Steel’s business rescue practitioners (BRPs) have instituted court proceedings against Air Liquide in the High Court seeking to cancel certain obligations under a supply agreement between the two companies.
The application also seeks declaratory relief from Air Liquide’s damages claim against Highveld as a result of the cancellation.
Air Liquide said it was opposing the relief and intends to bring a counterclaim against the BRPs, Highveld and other affected persons.
The industrial gases and services company said Clause 20.12 of the supply agreement did not impose any limitation on Air Liquide’s claim for damages against Highveld arising from a cancellation and that the BRPs were obliged to accept a claim to the full extent of Air Liquide’s duly mitigated damages.
Air Liquide further stated that it was entitled to receive a supply of water according to its requirements from the Highveld Steel water pipeline and to have the waste water managed by Highveld Steel’s wastewater treatment facility, on reasonable commercial terms.
To this end, Air Liquide should also be included in any agreement concluded with any third party or parties concerning the ownership and continued operation of the pipeline and wastewater treatment facility.
Air Liquide would also join all affected persons to the court proceedings for purposes of its counterclaim and for substituted service.