Arrium sale to be finalised in 2016 The restructuring and sale...

Arrium sale to be finalised in 2016

The restructuring and sale of troubled miner and steelmaker Arrium is expected to be completed by the end of the year.

The South Australian government has revealed it is considering a "substantial" plan from Arrium's administrators to save the company's troubled Whyalla steelworks.

And Arrium administrators, KordaMentha, say they expect the Arrium group of companies to attract genuine interest from a number of credible local and international parties.

It is now preparing the necessary materials to allow those groups to conduct their due diligence, including audited financial statements and budgets.

"It is anticipated that the recapitalisation (or) sale process will commence in late July 2016 and be largely completed by the end of 2016," KordaMentha said in a statement on Monday.

Under the proposal to save the Whyalla operations, SA would invest hundreds of millions of dollars, but only with similar support coming from the federal government.

Premier Jay Weatherill will meet with the Commonwealth and the opposition in coming days and believes time is of the essence.

"Every month we wait, we think it increases the risk that the steelworks will close," Mr Weatherill told reporters.

"It means that potential purchasers who may be interested today may not be interested tomorrow."
The administrators' plan came as research showed the closure of Arrium's SA operations would cost the state more than $750 million and about 5000 jobs.

In the Whyalla region nearly 4000 jobs or 40 per cent of the workforce would go and the economy would take a $530-million hit, with job losses to flow into other industries.

"This is about more than metal," Flinders University's Industrial Transformation Institute director John Spoehr said.

"In some senses Arrium is too big to be allowed to fall, given the impact in Whyalla and to the state as a whole."
Arrium went into voluntary administration last month after failed talks with its lenders amid a sustained low in commodity prices.

The rescue plan will most likely involve government support for infrastructure upgrades to make the company viable into the future.

"We're not too interested in just pumping up the value of the company so it gets sold," Mr Weatherill said.
"What we're primarily concerned with is an ongoing viable business."

http://www.theaustralian.com.au/new...s/news-story/a12f17b6ca66611ffaf9c9effcf4bb74