ASU - Debts Restructure/Refinance Request Proposal
Arrium Shareholders United (ASU) has today written to the CEOs and CFOs of all 4 major commercial banks (ANZ, CBA, NAB, WBC) to request for consideration and support for a Debts Restructure/Refinance proposal initiated by ASU.
Proposal Highlights
Reduce existing financing debt using sale proceeds received from the sale of Molycop mining consumable division for an amount up to A$1.6b.
Retire remaining financing debt at face value (no loss to the existing lenders) and be replaced with a new secured term loan and working capital facilities provided by the existing lending syndicate. The new secured term loan will be for a term up to 5 years secured by Arrium steel and mining assets with principal reduction starting at the beginning of 2nd year. Normal lending criteria and covenants are to apply.
A new board of directors will be formed including two seats recommended by the existing lending syndicate.
Obtain co-investment from South Australian government and Australian federal government for up to $150m to invest in new technology to upgrade aging Whyalla Steel plants.
Key objectives of the proposal are
No losses to the existing lenders and creditors. Debts will be restructured and repaid over an agreeable term.
Remove the uncertainty around the future of the company for the benefits of all stakeholders.
Avoid massive job losses in the event of change of ownership of Arrium steel and mining assets.
Maintain workers’ entitlements and working conditions.
Keep the steel industry in Australian hands.
It's a national imperative to keep the steel manufacturing industry strong, sustainable and in Australian hands. Australia cannot afford to make the same mistake as before from losing these nationally important assets to overseas investors.
This is now the best opportunity for all stakeholders to work together to return the company back to its legitimate owners and to keep the nationally important assets in Australian hands.
Charles Law
Arrium Shareholders United (ASU)
ASU Email: arrium.shareholders.united@gmail.com
ASU Website: http://arrium-asu.wixsite.com/fight-for-justice
ASU Facebook Page: https://www.facebook.com/arriumasu/
ASU Facebook Group: https://web.facebook.com/groups/1741774889431739
