Arrium - new administrator KordaMentha says "business as usual", holds out hope for Whyalla steelworks

Source: Federal Court of Australia

After less than a week in the job, the administrator originally appointed to the failed iron and steel company Arrium has been forced to quit.

The insolvency firm Grant Thornton was last night replaced by KordaMentha, which is perhaps best known for its administration of the airline Ansett fifteen years ago.

The coup came after enormous pressure from the "big four" banks and the Australian Workers Union who had threatened to use their numbers to to sack Grant Thornton at the first creditors meeting if they didn't go quietly.

Going back to the drawing board so soon is more uncertainty for Arrium workers especially for those with jobs on the line at the steelworks in Whyalla.

But KordaMentha partner Mark Mentha told me "business as usual" as he tries to stablise Arrium.

Source: Federal Court of Australia