Embattled steelmaker Evraz Highveld Steel & Vanadium (Highveld) on Thursday filed a notice of intention to oppose the urgent court proceedings aimed at having its business rescue plan halted and set aside.
Two companies linked to Highveld's parent company LSE-listed Evraz – East Metals and Mastercroft – were attempting to stop the implementation of the Highveld business rescue plan after recently instituting legal action to have the plan declared invalid and the October 13 creditors’ vote set aside.
The rescue plan, which included a buy-out offer from Hong Kong-based International Resources Limited, was also rejected by Evraz, which on Thursday said the plan was flawed and would not be sustainable.
The parent company said in a statement that it did not intend to frustrate the rescue process, but aimed to ensure the adoption of the most viable, sustainable and fair business rescue plan that would lead to the resumption of operations at Highveld, believing the current plan was unsustainable, lacked transparency and violated the interests of employees and creditors.
Trade union Solidarity this week also emerged as one of 12 respondents opposing the urgent application against the contested rescue plan, in the hopes that, through the implementation of the business rescue plan, liquidation and the loss of 2 400 jobs could be avoided.
The urgent court application was expected to be heard in the Pretoria High Court on November 17.