Arrium collapse investigation has begun

A forensic investigation into Arrium’s collapse is underway, reconstructing events focussing on the six months prior to the company’s April 7 administration.

Fairfax reports that the two months following the voluntary administration of the iron ore and steel company – which owes around $4 billion – had been around stabilising operations before a sale or recapitalisation.

Administrators KordaMentha said recently that the sale process is expected to begin in late-July and be largely finished by the end of the year.

“The administrators are gathering documentation and focusing on the six months leading up to the appointment of administrators,” a KordMentha spokesperson told Fairfax.

Deutsche Bank has been appointed to sell the profitable Moly-Cop grinding media and steel wire business, which has been estimated as being worth $1.5 to $2 billion.

The future of the loss-making Whyalla steelworks isn’t known. Mark Mentha of KordaMentha has said the steelworks have been “under-invested in for some period of time”.

The entire administration has been called the most complex in Australia’s history, and involves 94 companies.