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Arrium's first creditors' meeting today

Business

Arrium workers and other stakeholders are set to meet to consider the troubled steel and mining group’s future.

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The company’s first creditors’ meeting will be held in Sydney today and simulcast at employee meetings in Whyalla and Newcastle.

Creditors will be asked to vote, either in person or through proxies, whether to replace administrators KordaMentha.

They will also vote on whether to appoint a committee of creditors to consult with the administrators and approve their remuneration.

Arrium worker Steve Cook has nominated himself to represent employees and has said he will not seek to have new administrators appointed.

A written report outlining the state of the company will be presented at the second creditors’ meeting, scheduled for May 13.

Lead administrator Mark Mentha on Monday said the deadline was often extended for large and complex administrations and workers would be advised on the final timing.

In a letter to workers, Mentha said many of the Arrium businesses were in good shape but were exposed to challenges at the company’s Whyalla operations.

Arrium cut about 900 jobs at Whyalla last year as it grappled with a plunge in iron ore and steel prices, as well as a glut of cheap imported steel.

“There can be no solution for Arrium as a whole without addressing the challenges in those businesses,” Mentha wrote.

But he promised to leave “no stone unturned” in the administrators’ bid to save jobs and preserve the business.

“There is no doubt that Australia wants your companies to survive,” he wrote.

AAP

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