{"id":1334,"date":"2016-04-08T17:27:53","date_gmt":"2016-04-08T07:27:53","guid":{"rendered":"http:\/\/www.bnmme.com.au\/?p=1334"},"modified":"2016-04-08T17:27:53","modified_gmt":"2016-04-08T07:27:53","slug":"arrium-enters-voluntary-administration","status":"publish","type":"post","link":"https:\/\/yinghuiinternational.com\/index.php\/2016\/04\/08\/arrium-enters-voluntary-administration\/","title":{"rendered":"Arrium enters voluntary administration"},"content":{"rendered":"

\"arrium1-300x270\"Steel and iron ore business Arrium announced this morning that it has appointed Grant Thornton as administrators.<\/p>\n

\u201cAfter considering the available alternatives, in the current circumstances it has become clear to the board of Arrium that it has, unfortunately, been left with no option than to place the relevant companies into voluntary administration in order to protect the interests of stakeholders,\u201d it said in a statement to the ASX.<\/p>\n

The ABC reports that Arrium owes its bankers $2.8 billion, trade creditors $1 billion and employees $500 million in entitlements.<\/p>\n

Arrium, which split from BHP Billiton in 2000 as OneSteel, employs 7,000 in Australia, and over 1,000 at its Whyalla steelworks.
\n<\/strong>
\nThe fate of the steelworks has been in question for some time. Arrium announced in February that it was considering putting the plant and the company\u2019s iron ore operations in care and maintenance.<\/p>\n

Speculation about the company\u2019s future intensified earlier this week when Arrium\u2019s lending syndicate rejected a recapitalisation plan from vulture fund GSO Capital. This would\u2019ve seen lenders lose 50 cents in the dollar.<\/p>\n

It borrowed heavily to expand, buying up iron ore mines near the ore market\u2019s peak<\/p>\n

The management has been blamed for the company\u2019s situation, including by industry minister Christopher Pyne.<\/p>\n

\u201cIf there is anybody that needs to look at themselves, it\u2019s the Arrium management, not the banks,\u201d Business Spectator reports him as saying.<\/p>\n

\u201cArrium has a $2bn debt. That is a problem for Arrium, incurred by Arrium management. It is no fault of the workers of Whyalla and it\u2019s no fault of the state or commonwealth governments.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Steel and iron ore business Arrium announced this morning that it has appointed Grant Thornton as administrators. \u201cAfter considering the available alternatives, in the current circumstances it has become clear to the board of Arrium that it has, unfortunately, been left with no option than to place the relevant companies into voluntary administration in order … Continue reading “Arrium enters voluntary administration”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":["post-1334","post","type-post","status-publish","format-standard","hentry","category-iron-and-steel-industry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p83F9T-lw","jetpack-related-posts":[{"id":988,"url":"https:\/\/yinghuiinternational.com\/index.php\/2015\/10\/03\/arrium-to-slash-jobs-at-whyalla-steelworks%e2%80%8f\/","url_meta":{"origin":1334,"position":0},"title":"Arrium to slash jobs at Whyalla Steelworks\u200f","author":"yinghui","date":"October 3, 2015","format":false,"excerpt":"The owners of the Whyalla Steelworks in South Australia have announced that they will be cutting cost in the aim to save $100 million as they try and improve the viability of the steelworks. The cuts will affect areas such as, souring and procurement, labour and overheads, site rationalisations, corporate\u2026","rel":"","context":"In "Iron and Steel Industry"","block_context":{"text":"Iron and Steel Industry","link":"https:\/\/yinghuiinternational.com\/index.php\/category\/iron-and-steel-industry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1353,"url":"https:\/\/yinghuiinternational.com\/index.php\/2016\/04\/19\/keeping-whyalla-open-essential-to-arrium-survival-says-administrator\/","url_meta":{"origin":1334,"position":1},"title":"Keeping Whyalla open essential to Arrium survival, says administrator","author":"yinghui","date":"April 19, 2016","format":false,"excerpt":"A first meeting of Arrium\u2019s creditors is being held today, with the iron and steel business\u2019s administrator saying the future hinges on the Whyalla\u2019s steelworks. 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