Gupta to fight OneSteel wind-up

Original article by Nick Evans, Perry Williams
The Australian – Page: 13 & 16 : 7-Apr-21

The future of the Whyalla steelworks in South Australia is in doubt after Citibank filed a ‘winding-up in insolvency’ application for the plant’s operator, OneSteel Manufacturing. The application also includes Tahmoor Coal, which operates an associated coal mine in New South Wales. McGrathNicol will become liquidator of the two companies if the Supreme Court of NSW approves the application. British businessman Sanjeev Gupta is trying to secure $500m in new funding for the Whyalla steelworks following the collapse of Greensill Capital, which is the major creditor of his GFG Alliance.

CORPORATES
ONESTEEL MANUFACTURING, TAHMOOR COAL PTY LTD, CITIBANK (SWITZERLAND) AG, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, SUPREME COURT OF NEW SOUTH WALES, GREENSILL CAPITAL (UK) LIMITED, GFG ALLIANCE

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

Alcoa smelter’s future in the balance

Original article by Matt Johnston
Herald Sun – Page: 5 : 30-Oct-20

The Australia Institute has released a report which warns that the closure of Alcoa’s Portland aluminium smelter would reduce GDP by $800m and result in the loss of 3,600 jobs. The report was commissioned by Ben Davis of the Australian Workers’ Union, who says the economic impact of the smelter’s closure would be "unprecedented". He adds that the smelter helps to stabilise the electricity grid during periods of peak usage during summer. Both the Victorian and federal government are holding talks with Alcoa about the plant’s future.

CORPORATES
ALCOA INCORPORATED, ALCOA OF AUSTRALIA LIMITED, THE AUSTRALIA INSTITUTE LIMITED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Portland smelter survives cuts but future uncertain

Original article by Nick Evans
The Australian – Page: 15 : 24-Apr-20

Alcoa announced a review of its loss-making aluminium smelters in September, with its Portland smelter in Victoria one of the smelters under scrutiny. Alcoa advised on 22 April that it would be closing its Intalco smelter in the US, as well as indicating it will speed up its review of loss-making assets because of the economic downturn resulting from the COVID-19 pandemic. Alcoa CFO Bill Oplinger said the pandemic was making it harder for the company to sell its unwanted assets, reducing the prospect of finding a ‘white knight’ for Portland should Alcoa’s review of it be unfavourable.

CORPORATES
ALCOA INCORPORATED, ALUMINA LIMITED – ASX AWC

Former Arrium directors face recovery action

Original article by Simon Evans
The Australian Financial Review – Page: 16 : 22-Jul-19

Insolvency firm KordaMentha has launched legal action in the New South Wales Supreme Court in an attempt to pursue former directors of failed steel firm Arrium for monies owed to its creditors. Arrium was placed in administration in April 2016 owing $2.8 billion to banks and noteholders. KordaMentha then operated the business as administrators until it was purchased by British billionaire Sanjeev Gupta for around $700 million in August 2017.

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

BlueScope dives as chief departs

Original article by Matt Chambers
The Australian – Page: 17 & 20 : 22-Aug-17

BlueScope Steel has reported a sharp rise in net profit for 2016-17, to $A715.9m. However, the steel-maker has advised that EBIT for the first half of 2017-18 will fall from $A527m previously to $A422m, due to factors such as the strong Australian dollar and the impact of rising scrap metal prices in the US on its North Star subsidiary. BlueScope has also revealed that Mark Vassella will succeed CEO Paul O’Malley at the start of 2018, and that the company is the subject of a cartel investigation. BlueScope shares fell $A3.08 to $A11.03 on 21 August.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, NORTH STAR STEEL, CARGILL INCORPORATED, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CITIGROUP PTY LTD

BlueScope’s US protectionist profit bonanza

Original article by Simon Evans
The Australian Financial Review – Page: 13 & 16 : 23-Aug-16

BlueScope Steel has reported a rise of 160 per cent in net profit after tax to $A353.8 million for 2015-16. The Australian-listed steel maker benefited from cost-cutting initiatives, improving conditions in the global steel market and the imposition of anti-dumping duties in the US on steel imports from China. The company’s North Star mill in Ohio, which is the most profitable steel mill in North America, produces two million tonnes of steel annually.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, CARGILL INCORPORATED, ARRIUM LIMITED – ASX ARI

US expansion and local relief for BlueScope

Original article by Tim Binsted
The Australian Financial Review – Page: 13 & 18 : 27-Oct-15

Shares in BlueScope Steel closed 10.6 per cent higher at $A4.50 on 26 October 2015, after the group revealed that its Port Kembla steelworks will stay open. BlueScope had previously warned that it would have to close the last blast furnace unless costs were reduced. BlueScope has negotiated a deal with Port Kembla workers which includes a wage freeze and job cuts, while the New South Wales Government will defer payroll taxes for three years. BlueScope will also buy out Cargill’s 50 per cent stake in the North Star mill in the US.

CORPORATES
BLUESCOPE STEEL LIMITED – ASX BSL, CARGILL INCORPORATED, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

China steel output may fall 25pc

Original article by Angus Grigg, Jennifer Hewett, Phillip Coorey, Amanda Saunders
The Australian Financial Review – Page: 1 & 6 : 7-Apr-15

The price of iron ore fell to $US47 per tonne in early April 2015, and it has now shed 63 per cent since the beginning of 2014. Australian economist Ross Garnaut has forecast that steel production in China will decline by 27 per cent in the next 15 years, which would in turn affect demand for Australian iron ore. Meanwhile, Chris Richardson of Deloitte Access Economics notes that the continued fall in the iron ore price will slash Australia’s national income and tax revenue

CORPORATES
DELOITTE ACCESS ECONOMICS PTY LTD, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, AUSTRALIA. DEPT OF INDUSTRY AND SCIENCE, VALE SA, ATLAS IRON LIMITED – ASX AGO, MOUNT GIBSON IRON LIMITED – ASX MGX, BC IRON LIMITED – ASX BCI

Arrium chief slams inaction on dumping

Original article by Tim Binsted
The Australian Financial Review – Page: 26 : 19-Feb-15

Australian-listed steelmaker and iron ore miner Arrium has posted a 2014-15 interim loss of $A1.5bn. The result was marred by $A1.3bn worth of impairment charges associated with its iron ore assets. The group’s mining division posted operating earnings of $A77m, compared with $A423m previously. CEO Andrew Roberts has urged the Anti-Dumping Authority to act more quickly to curb the importation of low-cost steel

CORPORATES
ARRIUM LIMITED – ASX ARI, AUSTRALIA. ANTI-DUMPING AUTHORITY, ALLAN GRAY AUSTRALIA PTY LTD, SOUTHERN IRON PTY LTD