The large creditors such as BIS, K&S, material suppliers, scrap suppliers, mining contractors, etc would have received much more then the 15%.
Conversations with KM by large essential creditors early on would have been along the lines of:
Creditor says 'Unless I receive some of the monies owed I can't continue to service your business due to commercial pressure and not being able to repay loans or pay my employees.
KM says 'how much do you need ?'
Creditor 'says all of the debt',
KM says 'can't do that but I can give 50% of it to keep you going over the next few months'. Creditor says 'no worries that will help'..
KM says 'OK now sign this confidentiality agreement, the remaining debt you'll have to line up with all the other creditors for when the business is sold. If you tell anyone about this deal you'll face legal action and the monies will have to be returned'.
Creditor says, 'no worries' then starts looking at ways to get the rest back through jacking up rates hopefully accepted by sympathetic lower level Arrium managers.'
ARI Price at posting:
2.2¢ Sentiment: Hold Disclosure: Held
