JOHANNESBURG Oct 23 South Africa's Evraz Highveld Steel and Vanadium will defend its business rescue proceedings in court against British parent Evraz , the company said in a statement on Friday.
The South African steelmaker, seeking protection from creditors after heavy losses due to cheap imports from China, said East Metals AG and Mastercroft S. A. R. L had instituted court proceedings to have a vote by creditors earlier this month declared invalid.
Both are subsidiaries of the London-listed parent company, which acquired the South African steelmaker in 2008.
Creditors last week approved the South African steelmaker's rescue plan, which recommended an offer by Hong Kong based metals company, International Resources Limited, be accepted.
"Highveld and the BRPs intend opposing the application," said South Africa's Evraz, referring to itself and the business rescue practitioners that manage the company's protection from creditors.
The steelmaker in July issued notices to around 1,000 employees, nearly half its workforce, and closed its iron and steel making operations, saying that it would be a temporary measure and production will resume once market conditions improve and the company finds funding for its operations.
South Africa's government said in August it will impose a 10 percent import tariff on steel imports to protect the struggling industry.
(Reporting by TJ Strydom, editing by David Evans)
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