Former Arrium workers no longer waiting for money following sale to GFG Alliance
Luke Griffiths, The Advertiser
September 7, 2017 3:24pm
MORE than 400 Arrium workers who lost their job during the company’s 17-month administration have received 100 per cent of their entitlements.
Administrator KordaMentha confirmed this afternoon that proceeds from last week’s sale to GFG Alliance — understood to be worth $700 million — have started to flow through.
A total of $7.1 million, incorporating accrued leave, superannuation and other entitlements, has been paid to 402 former employees, including 103 from the company’s Whyalla operations, who left the company after Arrium collapsed with debts of $4 billion in April 2016.
The average payment to each departed worker received was $17,662.
Lead administrator Mark Mentha said the payment represented 100 cents in the dollar of money owed and that other distributions would be announced soon.
“The company was on the brink of collapse several times during the administration and it was saved by an incredibly powerful team effort by employees, managers, suppliers, the local community and the local, state and federal governments,” he said in a statement.
“It is appropriate, therefore, that the first distributions are going to people who worked at Arrium.”
Arrium, which has been rebranded under the ownership of GFG and its executive chairman Sanjeev Gupta, has 6060 employees across Australia, around half of whom are based in South Australia.
ARI Price at posting:
2.2¢ Sentiment: None Disclosure: Not Held
