http://www.copyright link/content/dam/images/g/n/0/b/n/a/image.related.afrArticleLead.620x350.gohffp.png/1461832305509.jpg <img src="/content/dam/images/g/n/0/b/n/a/image.related.afrArticleLead.620x350.gohffp.png/1461832305509.jpg" alt="The Arrium plant in Whyalla, South Australia." width="620" height="350" class="lazy620x350"/>
The Arrium plant in Whyalla, South Australia. David Mariuz
GSO Capital has departed Arrium Limited's long list of creditors in one of the first pieces of stabilising news in the hugely complex administration.
The Blackstone-backed fund had extended around $100 million to Arrium as part of the failed recapitalisation package that so enraged Arrium's banks.
Street Talk understands the local big four banks have agreed a deal, completed last week, to repay the GSO loan, leaving the vulture fund to find another carcass.
One thing that has become clear to creditors is that a sale of the Moly-Cop mining consumables business is the obvious way to get a large chunk of their capital back.
Moly-Cop generated more than half the Arrium group's earnings last year. Administrators KordaMentha are controlling shareholders in Moly-Cop but the business has been left out of administration, making any future sale process much easier.
KordaMentha will be keen to stabilise the whole Arrium business after the turmoil of axing the previous administrators, Grant Thornton, and the legal battle with Morgan Stanley.
Street Talk can also reveal Mark Mentha has now tapped Gilbert + Tobin to provide advice alongside Arnold Bloch Leibler, bringing Australia's two best distressed debt lawyers - Leon Zwier and Dominic Emmett - into the tent.
Sources said an investment bank could be appointed within a month to run a sales process for Moly-Cop, which is worth north of $1 billion.
Pamplona Capital, Argand Partners and Cerberus Capital, and TPG and KKR are all waiting in the wings to take the business out.