Money Arrium: British consortium GFG Alliance revising bid for Whyalla steelworks

16:37  19 june  2017
16:37  19 june  2017 Source:   ABC News

Whyalla locals seeing 'light at the end of the tunnel' after Arrium preferred bidder decision

  Whyalla locals seeing 'light at the end of the tunnel' after Arrium preferred bidder decision After a year of uncertainty for Whyalla created by its largest employer going into administration, the city's residents can see a light at the end of the tunnel following yesterday's announcement of a preferred bidder for steelmaker Arrium.The iron-ore giant went into administration in April 2016 with more than $4 billion in debts.Cafe owner Alessandro Parisi said Arrium's difficulties created a hard year for businesses and families in the town."We've had to lay people off, bring them back in and lay them off again," he said."The uncertainty of the future didn't help.

The Korean syndicate bidding for Arrium aims to invest up to billion on reinvigorating the Whyalla steelworks with new technology and a power plant. The Liberty House/SIMEC bidding vehicle is known as GFG Alliance .

British bidders Liberty House and SIMEC confirmed on Monday they had lodged a revised bid for Arrium , but KordaMentha Liberty House and SIMEC, who are bidding through a vehicle known as GFG Alliance , are prosing a modernisation of the Whyalla steelworks and a power plant which also

The Whyalla steelworks has found interest from two bidders. © Provided by ABC News The Whyalla steelworks has found interest from two bidders.

A revised bid is being made by British consortium GFG Alliance for the troubled steel business Arrium.

A GFC Alliance spokesman said the consortium remained passionate about the opportunity the South Australian steelworks, at Whyalla, offered and would keep pursuing discussions.

The Arrium steelworks went into voluntary administration last year, with debts of more than $4 billion.

The administrator for Arrium, KordaMentha, declined to comment on the latest information, apart from saying it was dealing directly with the preferred bid by a Korean consortium headed by Newlake Alliance Management and JB Asset Management.

A final sale of the Whyalla operations would be subject to approval by Arrium's committee of creditors and the Foreign Investment Review Board.

Arrium has a South Australian workforce of about 1,600.

The Korean bidder said it wanted to use a steelmaking technology known as Finex, which replaced the use of conventional blast furnaces.

'Imagine there's no Brexit': EU boss channels Lennon .
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