Arrium Limited (ASX: ARI)

Update – 31 October 2016

On 26 October 2016, the Federal Court granted Orders for the Voluntary Administrators to issue their reports required by section 439A of the Corporations Act 2001 (s439A report) on an aggregate basis. The Court also granted orders to allow representative voting for union-member employees at the creditors' second meeting.

On 27 October 2016, the Voluntary Administrators issued their s439A report and notice of meeting in relation to all 94 entities.  The creditors' meetings are scheduled for 4 November 2016. 

Further information is provided on the KordaMentha website, including a copy of the s439A report and details for the second creditors' meetings.


Arrium Ltd (ASX:ARI) (Arrium) is an international diversified mining and materials company listed on the ASX, with three key business segments: Arrium Mining Consumables, Arrium Mining and Arrium Steel.

Arrium Mining Consumables supplies resource companies with a range of key mining consumables.  Through its Moly-Cop brand, it is the largest supplier of grinding media in the world. 

Arrium Mining is involved in the export iron ore business including a wholly owned port at Whyalla, South Australia. Arrium Mining also supplies iron ore to Arrium's integrated steelworks in Whyalla.

Arrium Steel is Australia's only manufacturer of steel long products.  It is also Australia's leading steel distributor and reinforcing steel supplier. 

On 6 April 2016 Arrium requested a halt to trading their shares on the ASX until they could be in a position to make an announcement about discussions with lenders (banks and noteholders) following a recapitalisation plan that was rejected by GSO Capital Partners LP.

On 12 April KordaMentha Restructuring announced partners Mark Mentha, Martin Madden, Cassandra Mathews and Bryan Webster were appointed as Voluntary Administrators of Arrium Limited and its 93 Australian subsidiaries. KordaMentha replaced Grant Thornton who had initially been appointed as Voluntary Administrators on 7 April.

The appointment was a result of the aligned interest and co-operation between the unions, the four major Australian banks, the overseas banking syndicate and US noteholders.

KordaMentha have provided a website for creditors to obtain further information.

Arrium issued an announcement on the ASX on 13 April 2016.

What is voluntary administration?

Voluntary administration is where the directors of a financially troubled company or a secured creditor with a security interest over most of the company’s assets appoint an external administrator called a ‘voluntary administrator’.

The role of the voluntary administrator is to investigate the company’s business, property, affairs and financial circumstances, to report to creditors and to recommend to creditors whether the company should enter into a deed of company arrangement, go into liquidation or for the administration to end and control of the company be returned to the directors.

A voluntary administrator is to report to ASIC possible offences by people involved with the company.

More information:

ASIC’s role

The voluntary administrators will report to ASIC possible offences (if any) by those involved with the company, we will assess the report to consider our own investigations and action, if any.

This approach avoids ASIC's investigations diverting resources of the company at the early crucial stages of an administration.

ASIC has been in contact with the voluntary administrators (KordaMentha) and we will continue to monitor the progress of this matter closely. ASIC can initiate investigations at any time if circumstances develop where early ASIC involvement is appropriate.

More information:

Contact information – registering as a priority creditor (employee) or an unsecured creditor

To register as a priority creditor (employee) or unsecured creditor of Arrium you can contact Link Market Services. Details as follows:

By email to (General enquiries)

By email to (employee specific enquiries)

By phone to 1300 553 490

By facsimile to +61 2 9287 0309

By post, to Link Market Services Limited, Locked Bag A14, Sydney South NSW 123

Unpaid employee entitlements

The Fair Entitlements Guarantee (FEG) provides assistance for unpaid employee entitlements following liquidation of a company.

The FEG is a last resort financial assistance scheme where there is no other source of funds to pay entitlements after liquidation has occurred.

It is too early in the administration to confirm whether FEG assistance will be required.

The Department of Employment administers FEG and is communicating with the voluntary administrators to keep across developments in the administration process.

Last updated: 29/04/2021 10:51