Yep Smedley and Plummer over extended with debt. At the...

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937 Posts.

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30/03/16

11:30

Post #: 17380440
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Originally posted by Boges ↑

It really is amazing with the Liberal Party's work choices law which tip the playing field in favour of employers when wanting to fire employees (and often for petty or no reason at all) that shareholders (who are the owner's of Arrium) cannot demand people on that board be sacked for boneheaded decisions.

Smedley and Plummer are enjoying comfortable retirements (in Toorak and Palm Beach respectively) - disgrace - a bit like the chairman and CEO being the first ones getting into a life-raft after hitting the Titanic - the ice berg in this case was the stupid decision to buy WPG Resources in October 2011; total cost (including the port) of $600 million - and all done by borrowing from lenders . WIPE OUT - and yet still dickbrain Smedley was able to sit there with a huge debt pile and not do a rights issue to get the debt down to a more acceptable level - until it seems it was too late. Neither should be allowed anywhere near a public company again. DISGRACE. And the independent directors on the board - what were they doing - rubber stamping the strategy of the CEO and Chairman - they should get off the board as well. Might like to look at the positions of CFO and also the head of strategy inside ARI (Ms Naomi James) if they were in that position when this appalling decision was made.

HC's members thoughts??????

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Yep Smedley and Plummer over extended with debt.
At the operational level, G Waters ( CEO Mining) and S Hamer ( CEO Steel) , struggled with negotiations, costs, and communication, both have subsequently left.

FT

ARI Price at posting: 2.4¢ Sentiment: None Disclosure: Not Held
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