New administrator takes over Arrium and OneSteel

 Australian mining and steelmaking firm Arrium is now being overseen in bankruptcy administration by advisory and investment firm KordaMentha, which has replaced the accounting and advisory firm Grant Thornton.

On its website the new administrator says, “KordaMentha restructuring partners Mark Mentha, Martin Madden, Cassandra Mathews and Bryan Webster have tonight [12 April 2016] been appointed as voluntary administrators of Arrium Limited and its 93 Australian subsidiaries.”

On 7 April, four Grant Thornton partners had been appointed “joint and several administrators of Arrium Limited and associated entities pursuant to section 436A of the Corporations Act 2001,” according to an announcement on the Arrium website.

KordaMentha describes itself as “an advisory and investment firm that provides forensic, real estate, turnaround and restructuring services.”

Says the firm, “The appointment was a result of the aligned interest and cooperation between the unions, the four major Australian banks, the overseas banking syndicate and U.S. noteholders.”

Mark Mentha says it will be "business as usual" for the $5 billion mining firm. “KordaMentha Restructuring will continue to work closely with the companies, employees, unions, financiers, suppliers, state and federal governments to restore confidence to all of Arrium’s businesses, both in Australia and overseas.”

Iron ore mining is Arrium’s largest business sector, followed by the sale of mining consumables, such as grinding media and rail wheels. The company also has a steelmaking division that produces long products and a scrap recycling division.

Its OneSteel Recycling subsidiary operates about two dozen yards and offices in Australia and also has a presence in Southeast Asia, including a trading office in Hong Kong.