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City Press reports that the Industrial Development Corporation (IDC) has become the latest in a long line of litigants against the business rescuers of Evraz Highveld Steel and Vanadium.
In an urgent application to the North Gauteng High Court last week, the IDC asked the court to “perfect” its R150 million claim against the stricken steel group. This is despite the IDC already ranking higher than any other creditor, apart from the retrenched workforce. A spokesperson said they had no intention of trying to get paid before the workers did. The real concern is that the IDC would lose its ranking if Highveld’s last-ditch business rescue plan fails and the company goes into normal liquidation.
Of the R718 million hopefully remaining for distribution, employees would get R328 million as retrenchment packages and salaries that are owing. They would get preference before other creditors. According to Highveld’s business rescue practitioner Piers Marsden, there is no way the IDC could put its claim before that of the workers. He, however, added that this was his “opinion”.
- Read this report by Dewald Van Rensburg in full at City Press
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