No liquidity crisis at Arrium: directors

Original article by Max Mason
The Australian Financial Review – Page: 22 : 5-Mar-21

Marcus Pesman has told the New South Wales Supreme Court that collapsed steelmaker Arrium was not in a liquidity crisis. He is representing eight former members of the Arrium board in a lawsuit brought by liquidator KordaMentha for alleged insolvent trading. Pesman is also representing former Arrium CFO Robert Bakewell in the same action, along with two other actions brought by lenders to which the eight former board members are not defendants. Pesman told the court that the lenders had sufficient information available to make their own assessment of Arrium’s financial state at the time, while he noted that the Arrium board met 21 times between December 2015 and April 2016, indicating that the directors took their responsibilities seriously.

CORPORATES
ARRIUM LIMITED, KORDA MENTHA AND COLLEAGUES PTY LTD, SUPREME COURT OF NEW SOUTH WALES

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