Highveld: Rugby gives back

Solidarity’s Helping Hand branch in eMalahleni is still working tirelessly to provide affected households with food parcels.

On Saturday, April 2 Ms Annemarie van Heerden, chairlady of the local Helping Hand branch was presented with R30 000 that was collected during a rugby day hosted by Shumba Ferro’s Rugby club in conjunction with the Steval Pumas and Vodacom Blue Bulls.

The Lowveld Rhinos Golden Oldies Rugby Club dug deep into their pockets and also gave Van Heerden R1 700.

“This money will be put to good use. Thank you for opening your hearts to this worthy cause,” she said emotionally.

Things look bleak for Evraz Highveld Steel and Vanadium.
The State-owned Industrial Development Corporation (IDC) has instituted urgent court proceedings against the steel giant and the company’s joint business rescue practitioners to ensure that it is not relegated to a ‘concurrent creditor’ in the event of liquidation.

The IDC offered a R150million loan to Highveld in June last year to help its cover working capital requirements during a business rescue process.
After interest, Highveld owed the IDC R153.5million on February 9.
The company’s joint business rescue practitioner (BRP), Piers Marsden requested the IDC to review this interest rate.
In the meantime Eskom’s notified maximum demand has been reduced. The notified maximum demand has been reduced to 60MVA.

(From left) Barend van Graan (Chief Executive Officer Blue Bulls company), Danie Gerber (former Springbok legend), Annemarie van Heerden (Chairman Solidarity Helping Hand), Riaan Kotze (Chairman Shumba Ferro’s Rugby Club) and Pieter Burger (Chief Executive Officer Mpumalanga Rugby) during the handing over of the R30 000 donated to the local Helping Hand branch on April 2.

Highveld also settled with the family-owned bank, Sasfin, on terms acceptable to both parties.
SARS also wants its payment of R689million and the BRP is engaging with SARS to resolve this claim.
Highveld is taking huge steps in minimizing their costs. There has been a substantial cost cutting in key areas that include insurance and information technology. Only a core group of staff members has been retained to ensure assets remain in good condition and the security on the premises has not been reduced.

The BRP is going to move into Proposal 3, the wind-down of the company. This means selling the company’s assets.
This plan is designed to generate cash within the constraints of the current market dynamics and it is expected to take 36 months to complete.

For employees it would be ideal if Proposal 3 takes effect as they will then receive full severance packages in terms of the Labour Relations Act, whereas if the company were to be liquidated, employees would only be entitled to receive a maximum claim of R28 000 each.
Looking at the situation moneywise it Proposal 3 the business rescue cost will be substantially less than the fees of liquidators.

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