Sale Update, page-10

Boges
"Given some foreign companies are pulling out of the sale of Arrium due to the Government insisting Whyalla stay open until 2024, it should be returned to trading with a recap. plan in place."

That is an interesting proposition.

With the latest on the rumour mill being that there is only one bidder left, combined with the condition that Whyalla be kept open. An interesting situation arises.

Obviously with a single bidder the chance of maximising the sale price is reduced.

KM as administrator is obliged to pursue the maximum possible return for creditors. They will expose themselves if they do not. So ultimately the 'Arrium Australia' sale has to be measured against this benchmark.

Once the price is known, the returns have to be measured against those of a break up and liquidate or a DOCA to trade out.

Certainly still highly unlikely, but the environment has changed, with some of the big debt holders on selling their positions.