Australia: Arrium creditor group approves sale to GFG Alliance
Last Updated: 20 July 2017

KordaMentha Restructuring, the Deed Administrators for the Arrium Group Companies, announces that the Committee of Creditors today approved the sale of the steel and mining group to the London-based GFG Alliance.

Mark Mentha said the committee's approval removes the last significant hurdle to completion of the proposed sale recommended and announced by KordaMentha on 5 July.

Foreign investment approval was signed off by the Federal Treasurer Mr Morrison last week.

Mr Mentha said the sale also required approvals for the transition of workers' compensation coverage to the GFG Alliance and finalisation of accounting restructure steps. Their approvals are expected before 31 August, the target date for formal completion of the transaction.

KordaMentha would then move to a formal proof of debt process, including adjudication of debts, and determining returns to creditors whilst continuing its statutory duty to investigate the affairs of the company. All creditors will receive a report from the Deed Administrators after completion of the sale.

Mr Mentha said the sale would end a remarkable 16-month administration marked by its complexity, a volatile trading environment and an extraordinary effort by all stakeholders to maintain the business and preserve a future for Whyalla.

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