Arrium: One of the largest administrations in Australian history
Arrium Australia was a global steel and mining company with 6,500 employees and operations spanning 150 sites across Australia and overseas.
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Energy & Natural ResourcesArrium Australia was a global steel and mining company with 6,500 employees and operations spanning 150 sites across Australia and overseas.
With over $4 billion in debt, the business faced insolvency, placing jobs and essential industries at risk.
KordaMentha was appointed Voluntary Administrators to stabilise operations, preserve value, and manage one of the most complex corporate restructures in Australian history.
How we helped
Objectives
Our goal was to:
- Stabilise operations and reassure key stakeholders.
- Prepare the business for sale while preserving value for employees and creditors.
- Manage competing political, regulatory, and industrial relations pressures throughout the process
Our approach
- Ran a dual-track IPO and sale process for key assets.
- Mobilised cross-functional teams across restructuring, forensic, and real estate specialisations to maintain operations.
- Engaged closely with unions and employees to secure wage agreements and operational stability.
- Implemented solutions to reduce costs by approximately $300 million per year.
Outcomes acheived
- No employees lost their jobs during the administration.
- Moly-Cop was sold for $1.23 billion.
- The sale process for Arrium attracted over 50 expressions of interest and concluded with Liberty House.
- The successful outcome was achieved within 17 months, with the majority of distributions finalised within 21 days of settlement.
