Manufacturing News

HSBC set to dump its Arrium debt

According to a report in The Australian this morning, HSBC has become the latest Arrium lender to sell its debt in the company.

This latest move comes as voluntary administrators KordaMentha and advisers Morgan Stanley prepare to sell the remainder of the Arrium business early next year after divesting Moly-Cop to American Industrial Partners for $1.6 billion deal.

Sources maintain South Korea’s Posco remains the most obvious buyer of Arrium’s Whyalla steel operation.

While BlueScope could buy the east coast operations, it would be unable to spend up to $300 million required to replace its glass furnace, noted the news report.

The Australian Financial Review recently reported that Posco Capital’s involvement was dependant on Posco’s technology being part of a site upgrade at the Whyalla steelworks.

A couple of weeks ago, Posco were named as firm bidders by industry minister Greg Hunt – who travelled to Korea with a delegation to meet the steel business – then denied this was the case.

At the time, a spokesperson for Hunt noted they merely wanted to sell their proprietary Finex technology to the Whyalla site.

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