KordiaMentha, the administrators of struggling steelmaker Arrium, have announced that the company will be put up for sale in July this year.
Since taking over administration of the company on 12 April, KordiaMentha have managed to stabilise the business and have now turned their attention to “future recapitalisation/sale of the Arrium Group”, which comprises of the steelworks, port and mining operation at Whyalla; its Moly-Cop business; and its OneSteel Manufacturing & Distribution segment.
“The recapitalisation/sale will be conducted by way of a structured and co-ordinated process, in accordance with the Corporations Act, so as to achieve the optimal outcome for all stakeholders,” KordiaMentha said in a statement.
“The Arrium Group of companies are expected to attract genuine interest from numerous credible local and international parties, many of whom have already contacted KordiaMentha to register their interest. A global investment bank will be appointed shortly to advise on the sale of Moly-Cop.”
The advisory firm said it is preparing the necessary materials that interested parties will require to conduct due diligence.
“These include an information memorandum, audited FY16 financial statements, FY17 budgets and comprehensive data room with relevant up-to-date information, which will be made available to qualifying interested parties,” reads the statement.
“It is anticipated that the recapitalisation/sale process will commence in late July 2016 and be largely completed by the end of 2016.”