DEBTOR AND CREDITOR – AUSTRALIA

Qld Nickel’s debts ‘probably won’t be paid’

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Original article by Mark Ludlow
The Australian Financial Review – Page: 9 : 21-Apr-16

The former MD of Queensland Nickel, Clive Mensink, was evasive when asked about the company’s debts but, under pressure from lawyers, he said they were unlikely to be paid. Mensink appeared in the Supreme Court in Brisbane on 20 April 2016 in a case involving an injunction to stop FTI Consulting, acting as voluntary administrator for Queensland Nickel, from pursuing two call notices against QNI Resources and QNI Metals totalling $A190m.

CORPORATES
QUEENSLAND NICKEL SALES PTY LTD, QUEENSLAND NICKEL PTY LTD, FTI CONSULTING PTY LTD, QNI RESOURCES PTY LTD, QNI METALS PTY LTD, SUPREME COURT OF QUEENSLAND

Atlas Iron in plea for debt support

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Original article by Tess Ingram
The Australian Financial Review – Page: 30 : 19-Apr-16

Shares in Atlas Iron closed 17.4 per cent lower at $A0.019 on 18 April 2016. The iron ore miner’s chair, Cheryl Edwardes, has written to shareholders urging them to support a debt restructuring proposal, stressing that the group could go into voluntary administration if the deal does not proceed. Lenders would gain about 70 per cent of the company’s equity if the deal is approved by Atlas’s shareholders and lenders.

CORPORATES
ATLAS IRON LIMITED – ASX AGO, CGI GLASS LEWIS PTY LTD, PPB HOLDINGS PTY LTD, MOUNT GIBSON IRON LIMITED – ASX MGX

US bank action may thwart Arrium rescue

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Original article by Sarah Danckert
The Australian Financial Review – Page: 11 & 16 : 18-Apr-16

Morgan Stanley Bank has applied for a court order in the US seeking the repayment of a $US75.4m ($A97.6m) credit facility that it provided to failed steelmaker and iron ore miner Arrium. The US bank is also believed to be seeking a court order to prevent Arrium from transferring assets from the US. Arrium’s administrator KordaMentha in turn will apply to the Federal Court of Australia to block Morgan Stanley’s attempt to demand repayment of the debt facility.

CORPORATES
ARRIUM LIMITED – ASX ARI, MORGAN STANLEY BANK NA, KORDA MENTHA AND COLLEAGUES PTY LTD, FEDERAL COURT OF AUSTRALIA, DELAWARE CHANCERY COURT, MOLY-COP USA LLC, GRANT THORNTON AUSTRALIA, ARRIUM FINANCE, ARRIUM IRON ORE HOLDINGS, LIFESTEEL TECHNOLOGIES AMERICA LLC, ONESTEEL GROUP INCORPORATED, ONESTEEL RECYCLING INCORPORATED, ONESTEEL INVESTMENTS, GSO CAPITAL PARTNERS LP, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, ANSETT AUSTRALIA HOLDINGS LIMITED

Rio’s pay delay gambit may fail

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Original article by Paul Garvey
The Australian – Page: 20 : 12-Apr-16

Mining industry sources doubt that Rio Tinto will be able to enforce its revised payment terms for contractors and suppliers. The resources giant recently advised that it will pay invoices 90 days after receipt, compared with 45 days at present, and up from 30 days in 2015. Some industry watchers have suggested that the new payment schedule is more likely to apply to Rio’s future contracts, as suppliers will need to agree to any changes to existing arrangements.

CORPORATES
RIO TINTO LIMITED – ASX RIO, MONADELPHOUS GROUP LIMITED – ASX MND, WORLEYPARSONS LIMITED – ASX WOR, MACMAHON HOLDINGS LIMITED – ASX MAH, AUSDRILL LIMITED – ASX ASL, NRW HOLDINGS LIMITED – ASX NWH, BRIERTY LIMITED – ASX BYL, BHP BILLITON LIMITED – ASX BHP

Vultures circle fallen Arrium

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Original article by Paul Garvey
The Australian – Page: 19 & 23 : 8-Apr-16

An unnamed investment banker says Arrium’s voluntary administrators are likely to seek new discussions with GSO Capital Partners, whose $A1.2bn bailout proposal was rejected by Arrium’s lenders. Private equity firms are likely to have strong bargaining power in any negotiations to buy Arrium’s assets, as the failed iron ore miner and steelmaker’s lenders are unsecured creditors. Arrium boasts a global workforce of 22,000, with 7,000 employees in Australia.

CORPORATES
ARRIUM LIMITED – ASX ARI, GSO CAPITAL PARTNERS LP, GRANT THORNTON AUSTRALIA, THE BLACKSTONE GROUP LP, MOLY-COP, ALLAN GRAY AUSTRALIA PTY LTD, MORNINGSTAR PTY LTD, BLUESCOPE STEEL LIMITED – ASX BSL

Buyers wait as Arrium extends trading halt

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Original article by Simon Evans, Sarah Thompson
The Australian Financial Review – Page: 17 & 22 : 7-Apr-16

Debt-laden steel-maker and iron ore producer Arrium owes Australia’s four major banks some $A1bn in total. South Australian Treasurer Tom Koutsantonis has urged the banks to support Arrium, warning that they will lose all goodwill with the general public if the company collapses. Lack of progress with its lenders forced Arrium to extend its shares’ trading halt on 6 April 2016. Meanwhile, US private equity groups Argand Partners and Cerberus Capital Management are said to be considering a takeover offer for Arrium.

CORPORATES
ARRIUM LIMITED – ASX ARI, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE, ARGAND PARTNERS LLC, CERBERUS CAPITAL MANAGEMENT LP, MOLY-COP, PAMPLONA CAPITAL MANAGEMENT LLP, GSO CAPITAL PARTNERS LP, LIBERAL PARTY OF AUSTRALIA, BRICKWORKS LIMITED – ASX BKW

Assets back above pre-GFC peak

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Original article by David Uren
The Australian – Page: 4 : 5-Apr-16

Data from the Reserve Bank shows that the total value of Australians’ household assets compared with average household disposable income has risen above the high of 8.5 times recorded prior to the global financial crisis. This ratio declined to 6.8 times during the GFC. The figures also show that average debt comprises 21.6 per cent of the value of household assets, down from 23.7 per cent at the end of 2011.

CORPORATES
RESERVE BANK OF AUSTRALIA

Arrium’s future hangs in balance

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Original article by Paul Garvey, Michael Owen
The Australian – Page: 19 & 20 : 5-Apr-16

South Australian Treasurer Tom Koutsantonis has urged the nation’s banks to provide assistance to debt-laden steel maker and iron producer Arrium. Concern about the future of the Whyalla steelworks has deepened after Arrium’s lenders rejected a bailout plan from Blackstone-owned GSO Capital Partners. The lenders, who rank as unsecured creditors, would have received just $A0.55 in the dollar if the $US927m ($A1.2bn) recapitalisation proposal had been approved.

CORPORATES
ARRIUM LIMITED – ASX ARI, GSO CAPITAL PARTNERS LP, THE BLACKSTONE GROUP LP, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, ARGAND PARTNERS, CERBERUS CAPITAL MANAGEMENT LP, KKR AND COMPANY LP, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE

Banks give Slaters two months

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 1 & 8 : 1-Mar-16

Australian-listed law firm Slater & Gordon has posted a 2015-16 interim loss of $A958m. The result was marred by write-downs associated with the purchase of the professional services division of UK-based Quindell in 2015. The firm’s debt has blown out to $A740m, and its lenders have set a deadline of 30 April 2016 to secure a refinancing deal. Slater & Gordon could face the prospect of bankruptcy within 12 months if it cannot renegotiate its loans.

CORPORATES
SLATER AND GORDON LIMITED – ASX SGH, QUINDELL PLC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, WESTPAC BANKING CORPORATION – ASX WBC, MAURICE BLACKBURN PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, VGI PARTNERS PTY LTD

Dick Smith put in fire sale bin

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Original article by Kylar Loussikian
The Australian – Page: 15 & 16 : 6-Jan-16

Ferrier Hodgson hopes to sell the Dick Smith consumer electronics business as a going concern, although some analysts question whether there will be much interest in the retailer. Dick Smiths Holdings’ lenders appointed Ferrier Hodgson as receivers after the listed company went into voluntary administration. Dick Smith owes creditors about $A300m, while people who hold gift vouchers will not be able to redeem them.

CORPORATES
DICK SMITH HOLDINGS LIMITED – ASX DSH, FERRIER HODGSON AND COMPANY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, HSBC AUSTRALIA HOLDINGS PTY LTD, PMP LIMITED – ASX PMP, WOOLWORTHS LIMITED – ASX WOW, ANCHORAGE CAPITAL PARTNERS PTY LTD, McGRATH NICOL AND PARTNERS SERVICES PTY LTD, CYAN INVESTMENT MANAGEMENT PTY LTD, IG MARKETS LIMITED, JB HI-FI LIMITED – ASX JBH, HARVEY NORMAN HOLDINGS LIMITED – ASX HVN, ALDI STORES SUPERMARKETS PTY LTD, AFFINITY EDUCATION GROUP LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, GOLDMAN SACHS AND PARTNERS AUSTRALIA PTY LTD, FORAGER FUNDS MANAGEMENT PTY LTD, DELOITTE TOUCHE TOHMATSU LIMITED, BLACKROCK INCORPORATED, FIDELITY WORLDWIDE INVESTMENT, MYER HOLDINGS LIMITED – ASX MYR, BLOOMBERG LP, THE GOOD GUYS