Here, Here fitnfam. I for one am a big shareholder and rest...

Here, Here fitnfam. I for one am a big shareholder and rest assured, will be more than happy to join class action lawsuit if KM uncovers illegal conduct by the directors of Arrium Board. KM are certainly aware of this which is why they mentioned the prospects of a class action lawsuit by shareholders against the directors for possible breaches of the Corporations Law - the shareholders in such a case would rank as creditors and possibly ahead of other creditors. They did, however, not go into the specifics of the case as it was too early to mention if it has merit or not - merely that they would have to consider it. Given time to investigate, and they will have had that by late July/August 2016, they should have a clearly picture to give advice then on sale of Arrium and/or any re-cap plan.

In the meantime, let's hope Federal and State Governments come to the table with a few hundred million to save Whyalla Steelworks and the MB Iron Ore Mine. It would certainly save them money down the track (receive ongoing PAYG receipts, less dole payments and social services needed) plus the Australian Banks benefit in that home and credit card loans get repaid).

And it would make the sale of Arrium - either in total or in parts that much more valuable. My best bet is Whyalla will be tidied up and bought from Arrium by Bluescope for maybe A$200 million or so. Then either Molcyop will be sold off in a IPO (unless Private equity or trade buyer makes a decent offer which seems unlikely) for A$1 Billion in cash, the banks keep A$800 million worth of Molycop shares and the A$200 million in debt is attached to the Molcyop operation.

This leaves the 2 mini mills (A$220 million per year EBIT), Scrap recycling (A$5 million) plus the MBR Iron Ore Mines (say A$30 million EBIT if iron ore hangs around US$48 to $50 per tonne and they lower their breakeven cost to US$38 or lower). Only trouble is the SI operation - they still have to pay out A$50 million until 20/6/2017 due to terrible due diligence by Arrium board and management on those 5 year take or pay contracts. Thanks a lot Mr Smedley, Mr Plummer, Mr Elder and Ms James.