New Zealand-based Todd is reportedly planning to launch a bid for Australian iron ore mining and steelmaker Arrium, which is currently in voluntary administration.
Arrium is reportedly in the hands of administrators KordaMentha, although its strategy may involve splitting various portions of the operation to Chinese entities.
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Cerberus Private Equity is partnering with Argand, and is also planning to participate in the bid.
On 7 April, Arrium entered voluntary administration, which is expected to have impact on the company’s loss-making Whyalla plant in South Australia.
The Whyalla Steelworks manufactures rail and occupies a 1,000ha site on the shore of False Bay, Spencer Gulf.
Separately, Arrium announced that KordaMentha has won an extension from the Federal Court of Australia for the second creditors’ meeting until February 2017.
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By GlobalDataThe court also ordered that under section 447A(1) of the Corporations Act, this meeting may be held at any time during the convening period, or within five business days of it ending.
Arrium said that the same orders were made with respect to its 93 subsidiary entities that are in the hands of voluntary administrators.
The court granted the extension after KordaMentha’s lawyer Leon Zwier argued that the complex nature of Arrium’s business structure added to the complexity of the administration, The Sydney Herald reported.
Image: The Whyalla Steelworks circa 2009. Photo: courtesy of Joeltbooth.
