An Utterly Disgraceful Administration!?
The Arrium administration has not been managed in a fair and open manner!
After securing $1.6b from disposing the Molycop mining consumable business to reduce debt and gearing to a manageable level, with the substantial recovery of steel and iron ore prices since April this year, the remaining Arrium mining and steel making businesses are now having a great prospect ahead.
It is a question for the government, administrators, creditors and even the regulator ASIC, how can they justify to allow an Australian company with local steel making heritage dated over 100 years ago to be sold in pieces to the foreign buyers under a fire sales condition without allowing it to be returned back to the shareholders and the Australian public?
Governments, both the states and the federal levels, are planning to contribute tens of millions of taxpayers monies to support the continued operation of the business going forward. Why these monies cannot be used to support the existing 80,000 mum and dad investors, current and former employees and the Australian public having their life savings managed by the pension funds invested in the company?
The corporation law states that one of three possible outcomes other than liquidating the company is to “Return the company back to the directors”. If for a company like Arrium Australia with manageable debt and hundreds of millions of projected annual profit still cannot be returned back to the directors, how this outcome could even be reasonably possible under the Law?
Has the intended purpose of the voluntary administration been obliged to?
Who benefit from the losses of the shareholders and the Australian public?
What ASIC is doing as a regulator?
