Administrators welcomes SA Government investment in Whyalla, but wants more

KordaMentha Restructuring has said it welcomes the South Australian Government’s $50 million contribution to help secure the future of Arrium’s OneWhyalla business.

Administrator Mark Mentha said the decision will go a long way towards assisting the town’s steelworks and mining operations.

“It’s a great response to what has been an unbelievably strong display of unity by all stakeholders in the Arrium businesses that include government, business, local people, suppliers and employees” he said.

Mentha said he looks forward to working with South Australia to gain a further $100 million for future investment, adding that the administrators had lowered costs by $300 million inside the business.

He said that this investment will provide a much needed boost to the Whyalla community and citizens.

“This is the shot in the arm the community needs right now.” Mentha said investments of this size would make a big difference to the sale / recapitalisation process for the Arrium companies.

This process is expected to begin next month.

“This will make Arrium a much more attractive and sustainable proposition for potential investors,” Mentha said.

The ANZ, Commonwealth Bank, NAB and Westpac banks are owed all up $1 billion from the Arrium collapse.