STEEL-WORKS – SOUTH AUSTRALIA

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

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