Evraz Plc Statement re. EVRAZ Highveld (6691E)
November 05 2015 - 4:40AM
UK Regulatory
TIDMEVR
RNS Number : 6691E
Evraz Plc
05 November 2015
Statement re. EVRAZ Highveld Steel and Vanadium
5 November 2015 - Recent public statements made by the Business
Rescue Practitioners of EVRAZ Highveld Steel and Vanadium
(<<Highveld Steel>>) appear to suggest that EVRAZ is
engaged in a course of action which is <<clearly designed to
frustrate the business rescue process>>. This is denied by
EVRAZ.
EVRAZ wishes to place on record that it remains fully supportive
of the business rescue process and any sustainable endeavor to
rescue the business of Highveld Steel in the collective interest of
all creditors, employees as well as the South African steel
manufacturing industry. EVRAZ stands for saving jobs and resuming
operations at Highveld Steel.
In this context EVRAZ initiated and has strongly supported the
business rescue process for Highveld Steel up until the submission
of the current business rescue plan.
EVRAZ expected the Business Rescue Practitioners to put together
and present to affected persons a plan that would reflect fair
value for the interests of creditors, employees and the steel
industry overall.
What transpired however is that the BRPs did not utilize
abundant time and resources to search for viable solutions and to
produce a sustainable plan that would lead to resuming operations
at Highveld Steel.
It is the considered view of EVRAZ that the plan currently put
forward by the Business Rescue Practitioners gives no assurance of
a successful resumption in future trading and substantive
employment by Highveld Steel nor does it offer creditors a better
return than they are likely to receive even in a liquidation
scenario, which EVRAZ strongly opposes.
This only plan was put forward and suggested for voting at the
creditors' meeting on 13 October 2015. No viable alternatives have
been forthcoming from the Business Rescue Practitioners, who seem
to be quite irrationally driven to implement the plan, despite the
lack of proper disclosure to creditors and the blatant violation of
creditor voting interests on seeking its approval.
EVRAZ stands for rescuing the Highveld Steel business, not
selling it by all means. With the business rescue plan being
neither sustainable, nor transparent and the interests of employees
and creditors violated, the situation causes concern and encourages
EVRAZ to institute court proceedings to set the present plan
aside.
###
For further information:
Media Relations:
London: +44 207 Moscow: +7 495
832 8998 937 6871
media@evraz.com
Investor Relations:
London: +44 207 Moscow: +7 495
832 8990 232 1370
ir@evraz.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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