5th Nov 2015 09:48
LONDON (Alliance News) - Russian steel maker and coal miner Evraz PLC on Thursday said it remains "fully supportive" of the business rescue practitioners working on the Highveld Steel and Vanadium business in South Africa following recent comments critical of Evraz.
Evraz said recent public statement made by the practitioners appear to suggest Evraz is taking action "clearly designed to frustrate the business rescue process".
The company said 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."
Evraz said, however, that the practitioners' plan "did not utilise abundant time and resources to search for viable solutions and to produce a sustainable plan that would lead to resuming operations at Highveld Steel."
Evraz said the plan tabled by the 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", something Evraz said it "strongly opposes".
The Highveld unit filed for business rescue procedures in April this year.
Shares in Evraz were down 2.9% to 82.65 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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