On the 7th April 2016, Arrium Limited announced that Voluntary Administrators have been appointed to oversee the affairs of the company.
Staff from Grant Thornton have been appointed to act as Voluntary Administrators for each of the relevant companies including OneSteel. HERA understands since this announcement that the administrators have changed to KordaMentha and Grant Thornton was replaced.
Newly-appointed administrator Mark Mentha indicated his first step is to “stabilise” the various business units of the failed steelmaker, promising he’ll “leave no stone unturned” to preserve the business and jobs. The business is operating on a ‘business as usual’ basis, and it is expected to take some months to resolve the voluntary administration position.
Arrium has been encouraged by the support of all stakeholders, particularly its major customers and is working through the issues on a business as usual basis.
Initial Australian reaction indicates that this is not the end of the road for Australian’s steelmaker and HERA understands that trading continues as usual. According to Adelaide’s ‘The Advertiser,’ “South Australian treasurer Tom Koutsantonis says taxpayer backing for major upgrades to Whyalla steelworks business Arrium will be considered as part of a rescue package for the company, which went into voluntary administration this morning.
Mr Koutsantonis fronted the media after the company was put into voluntary administration, and urged a national response to maintain Australia’s only structural steel maker.”