Evraz Highveld Steel and Vanadium Limited
Evraz Highveld is the second largest steel manufacturer in South Africa. It is the country’s only producer of heavy structural steel products and only one of five such companies in the world.
In 2015 the Board and management advised that the firm did not have sufficient funding to meet its financial obligations for the short term as a result of historical operational and financial difficulties and extremely difficult steel and vanadium market conditions. It was resolved to place the company into Business rescue.
Initially an accelerated M&A process was entered into, in order to find a strategic investor, and ways of reducing costs were implemented. Several independent environmental specialists were appointed to evaluate and assess the potential environmental liability and a rotational lay off agreement was entered into with the unions, and later, a full retrenchment of all the staff.
In an attempt to preserve value, an application was submitted to the International Trade Administration Commission (“ITAC”) for import price protection. Several private and governmental entities were approached in order to obtain post commencement funding.
The process is currently still underway.
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