Arrium CEO Andrew Roberts steps out door at collapsed firm
http://www.copyright link/content/dam/images/g/k/h/0/1/u/image.related.afrArticleLead.620x350.goo5aw.png/1462520387826.jpg <img src="/content/dam/images/g/k/h/0/1/u/image.related.afrArticleLead.620x350.goo5aw.png/1462520387826.jpg" alt="Andrew Roberts had held numerous executive positions with Arrium." width="620" height="350" class="lazy620x350"/>
Andrew Roberts had held numerous executive positions with Arrium. James Alcock
Andrew Roberts, the chief executive of collapsed steel maker Arrium, has left the company along with another senior executive, Naomi James.
Mr Roberts left Arrium on Friday after
staying on for an extra four weeks after the company went into administration on April 7, with creditors owed $4 billion.
Administrators KordaMentha are understood to have sent a note to staff on Friday informing them of Mr Roberts' departure and that of Naomi James, the chief executive of strategy at Arrium. Both positions were made redundant on Friday morning by lead administrator Mark Mentha.
Mr Roberts became chief executive in July, 2013 but had worked in executive roles across Arrium's iron ore, steel and mining consumables business since Arrium was spun out of BHP Billiton as OneSteel in 2000.
When KordaMentha took over as administrators of Arrium six days after the original administrator Grant Thornton was replaced, Mr Mentha said Mr Roberts would stay on to help with information flow as the administrators attempted to stabilise the business.
That phase is now finished.
The banking syndicate at Arrium, which includes all four major Australian banks, was furious with Mr Roberts and the Arrium board over a surprise $1.2 billion refinancing proposal agreed with United States vulture fund GSO Capital.
The GSO proposal offered the banks 55¢ in the dollar and was announced on February 22. The ASX announcement was the first time the bank lenders had heard about the recapitalisation, and this ambush seriously soured the already testy relationship between them and the upper echelons of Arrium.
The fact that Arrium subsequently appointed Grant Thornton as voluntary administrators, against the wishes of the creditors added fuel to the fire.
Grant Thornton was replaced with KordaMentha by creditors through the courts.
Earlier this week
KordaMentha was granted a hefty extension by the Federal Court until February 28, 2017 on when it needed to hold its next creditors' meeting.
The creditors' committee, which will represent creditors' interests to the administrators throughout the process, met for the first time on Thursday.
Steve Cook, the human resources manager of Arrium subsidiary OneSteel, said the first meeting went well and things have stabilised after a tumultuous period.
"I'm comfortable with where things are at. There are no real surprises," he said.
"The big issue is entitlements. First and foremost if we can secure ongoing employment for people that is the best outcome. If not, then it is about entitlements."
Mr Cook sits on the creditors' committee and represents about 6000 non-unionised employees of the Arrium group.
He said there are some misgivings about a drawn-out administration process.
"From my perspective the longer that the administration goes, that cost comes out of the pool and is no longer available to employees," he said.
Some sources suggested an investment bank could be appointed to kick off a sale process for Arrium's crown jewel, Moly-Cop, sooner rather than later
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