Imo its different than MBN.
MbN is just another mine, a single business with no profit. It doesnt have national sensitivity and it can easily be broken apart.
Arrium has a profit generating division and 2 divisions that are both cash losing and of national interest.
Hey whyalla may well be gone in the future..but gov likely will try a couple of time to support and fund it..gov did it with holden, this steel plant is much much more important than holden.
And it cannot be easily liquidated because than the ensuing impact would be catasthrophe for everyone....
There's an article saying that if this isnjust another kind of business, the current owners will lose money because normal practise is to seperate the good business from the bad business then sell off the bad business..banks get money from selling the bad business and have big claims from the good business..
Not so easy with arrium.
Molycop needs to stay within arrium whilts the problem at whyalla is being dealt with.
Whyalla cannot be easily liquidated, sold off because gov would want to keep it afloat for national reason.
If new owners come in..its likely be a combination of banks and creditors getting some equity portion and gov money..it would be dangerous to let a foreign vulture fund to own arrium from gov perspective..all vulture funds would do is close whyalla and get molycop..
You just cant compare arrium with pasminco or mbn or dick smith or any other VA situations...those who do normall just got their knowledge from newspapers and online news without actually reading the reports and understanding the economis of the business.
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