Johannesburg - Evraz Highveld Steel and Vanadium creditors will tomorrow decide on whether Hong Kong-based International Resources Limited (IRL) has succeeded in buying the troubled steel company.
The creditors are expected to vote on Evraz’s business rescue plan, which recommended IRL as the successful bidder to buy the company.
Evraz joint business rescue operator Piers Marsden said the rescue plan would restore the solvency and liquidity of the company and ensure its long-term sustainability.
Marsden said with government and labour support, the company could survive the rescue process. “We are negotiating with IRL for the right of last refusal for creditors on the future supply to Highveld,” said Marsden.
“We believe accepting their offer is the best outcome as it will ensure the long-term sustainability of this crucial business in South Africa’s steel value chain.”
In August, Evraz said it would go into rescue plan and could retrench up to 1 100 workers as it battled the influx of cheap Chinese steel imports.
Marsden said if the vote for IRL failed to materialise, it could leave the company with no choice but to wind down.
BUSINESS REPORT