STEEL-WORKS – SOUTH AUSTRALIA

Whyalla rescue plan launched two months ago

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Original article by Simon Evans
The Australian Financial Review – Page: 19 : 25-Feb-25

Bruce Carter has been the chairman of the South Australian government’s Steel Task Force since its inception in 2015. It was established over concerns regarding the financial stability and future of the Whyalla steelworks under the then-ownership of Arrium, which went broke in 2016, with British industrialist Sanjeev Gupta emerging as the new owner of the steelworks in mid-2017. With the state government becoming increasingly fed up with Gupta’s unpaid bills and the damage they were doing to the town of Whyalla, it has been revealed that Carter phoned KordaMentha in late 2024 about the possibility of placing the steelworks into administration; the government ended up appointing KordaMentha as administrator of the Whyalla steelworks and associated iron ore mines on 19 February.

CORPORATES
KORDA MENTHA AND COLLEAGUES PTY LTD, ARRIUM LIMITED

Gupta to fight OneSteel wind-up

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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

Whyalla steel mill rescue a step closer

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Original article by Matt Chambers
The Australian – Page: 21 : 2-Jun-17

Administrator KordaMentha hopes to finalise the sale of steel producer and iron ore miner Arrium by the end of June. The two final bidders, GFG Alliance and a consortium headed by private equity firm Newlake Alliance, will seek approval from the Foreign Investment Review Board. GFG comprises Liberty House and SIMEC, which are controlled by British businessman Sanjeev Gupta. Arrium collapsed in April 2016 with debts of $A4bn.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, GFG ALLIANCE, LIBERTY HOUSE GROUP, SIMEC GROUP LIMITED, NEWLAKE ALLIANCE, BHP BILLITON LIMITED – ASX BHP, BLUESCOPE STEEL LIMITED – ASX BSL, POSCO, ADANI MINING PTY LTD, THE BLACKSTONE GROUP LP, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD

Arrium pushes to free itself from state grid

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Original article by Sid Maher
The Australian – Page: 6 : 5-Oct-16

The Whyalla steelworks could become energy self-sufficient if plans put forward by Arrium’s administrator Mark Korda come to fruition. Full power has yet to be restored to the steelworks and Arrium’s iron ore mining operations following South Australia’s state-wide power outage. Korda is holding talks with the State Government and the Clean Energy Finance Corporation about financing to convert the steelworks’ energy supply to a combination of natural gas and its own waste gases.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, AUSTRALIA. CLEAN ENERGY FINANCE CORPORATION, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES

Miners face $150m hit from blackout

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Original article by Matt Chambers
The Australian – Page: 17 & 27 : 4-Oct-16

OZ Minerals has advised that electric power is unlikely to be restored at its Prominent Hill mine in South Australia for at least another week, while its 2016-17 gold production forecast may not be met as a result. The recent state-wide power outage also halted production at BHP Billiton’s Olympic Dam mine and Arrium’s Whyalla steelworks. Meanwhile, the suspension of production at Nyrstar’s lead smelter at Port Pirie is believed to have contributed to a spike in the price of lead on the London Metal Exchange.

CORPORATES
OZ MINERALS LIMITED – ASX OZL, BHP BILLITON LIMITED – ASX BHP, ARRIUM LIMITED – ASX ARI, NYRSTAR AUSTRALIA PTY LTD, LONDON METAL EXCHANGE LIMITED, KORDA MENTHA AND COLLEAGUES PTY LTD

Arrium and its steelworks to go on block in late July

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Original article by Simon Evans
The Australian Financial Review – Page: 8 : 24-May-16

KordaMentha has indicated that a number of Australian and offshore groups have expressed interest in buying the assets of Arrium. KordaMentha, which was appointed as administrator of the failed steel producer and iron ore miner in mid-April 2016, will commence the formal sale process in July, with expectations that it will be completed by the end of the year.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, MOLY-COP, ARGAND PARTNERS LLC, CERBERUS CAPITAL MANAGEMENT LP, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, GRANT THORNTON AUSTRALIA

Firm met in secret before plug pulled

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Original article by Simon Evans, Tim Binsted
The Australian Financial Review – Page: 15 & 20 : 21-Apr-16

Arrium’s former administrator Grant Thornton has revealed that it discussed the possibility of voluntary administration with the failed steelmaker and iron ore miner’s law firm, Herbert Smith Freehills, on 11 March 2016. Arrium went into administration on 7 April, and Grant Thornton was subsequently replaced as administrator by KordaMentha.

CORPORATES
ARRIUM LIMITED – ASX ARI, GRANT THORNTON AUSTRALIA, KORDA MENTHA AND COLLEAGUES PTY LTD, HERBERT SMITH FREEHILLS PTY LTD, GSO CAPITAL PARTNERS LP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, LAZARD PTY LTD, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, BANK OF CHINA GROUP, INDUSTRIAL AND COMMERCIAL BANK OF CHINA, TAIWAN BUSINESS BANK, TAIWAN COOPERATIVE BANK, CHANG HWA COMMERCIAL BANK LIMITED, BANK OF NOVA SCOTIA, GRUPO BANCO BILBAO VIZCAYA ARGENTARIA SA, HSBC BANK PLC, MIZUHO BANK LIMITED, SUMITOMO MITSUI BANKING CORPORATION, BANQUE CANTONALE DE GENEVE, DEUTSCHE BANK AG, MEGA INTERNATIONAL COMMERCIAL BANK COMPANY LIMITED, BABSON CAPITAL MANAGEMENT LLC, AEGON NV, MUTUAL OF OMAHA INSURANCE COMPANY, OHIO NATIONAL FINANCIAL SERVICES INCORPORATED

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

Mentha steps in to fix Arrium

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Original article by Simon Evans, Tim Binsted
The Australian Financial Review – Page: 7 : 14-Apr-16

KordaMentha’s Mark Mentha says he will consider every option for restructuring steelmaker and iron ore miner Arrium. Mentha was appointed as administrator of Arrium after the Australian Workers’ Union, lenders and bondholders succeeded in removing Grant Thornton from the role. Mentha says Arrium’s collapse was primarily due to a decline in relations between the group’s board and its lenders. The first creditors’ meeting is scheduled for 19 April 2016.

CORPORATES
ARRIUM LIMITED – ASX ARI, KORDA MENTHA AND COLLEAGUES PTY LTD, GRANT THORNTON AUSTRALIA, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, BHP BILLITON LIMITED – ASX BHP, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, MOLY-COP, GSO CAPITAL PARTNERS LP, SOUTH AUSTRALIA. DEPT OF THE PREMIER AND CABINET, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, ANSETT AUSTRALIA HOLDINGS LIMITED

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