21 hours ago
Administrators reveal staggering debts of Whyalla Ports with at least $194 million owed
The administrators of Whyalla Ports Pty Ltd have told creditors the company owes at least $194 million, but the true amount is still unclear.
Accounting firm William Buck held the first creditors' meeting for the company on Thursday, revealing $25 million was owed to trade creditors with a further $63 million listed as a lease liability.
The largest slice is owed to Golding's and its parent company NRW, a key mining contractor, with a secured debt of $106 million.
However, administrator Michael Brereton said they were waiting to receive financial records from Whyalla Ports directors.
"One of the first things we did on our appointment was to issue a notice to the directors to complete what's called the report on company affairs and property," Mr Brereton said.
"That was issued immediately … [and] we have yet to receive those from the directors, so we don't have all the financial information.
"[I] think one of the problems they face is that the company operated on the basis that it held the port.
"Based on the litigation and the legislation that's been passed, it's become apparent that maybe the company didn't have control of the ports.
"So I suspect they're having some problems trying to work through 'What are the financial records of the company?'"
In early June, the ports became another casualty in the ongoing fallout since the Whyalla Steelworks was tipped into administration by the state government.
The company, Whyalla Ports Pty Ltd, was involved in a Federal Court case launched by Whyalla Steelworks administrators KordaMentha, which wants control of the port so it can sell the steelworks as an integrated asset.
Parent company GFG Alliance said when the state government passed new laws to "clarify" that the port was owned by OneSteel, it was left with "no option" but to push the port into administration.
KordaMentha has since abandoned the legal action it began. However, a counterclaim from GFG Alliance is still being pursued over the ownership of some assets.
During today's meeting, Mr Brereton said a lease agreement between OneSteel and Whyalla Ports was terminated on March 27.
"The company was not trading on our appointment," Mr Brereton said.
"The company was dispossessed of all its plants and equipment at that time and its right to provide services to customers."
One Whyalla creditor, who wished to remain anonymous, previously told the ABC they were owed between $100,000 and $200,000 by Whyalla Ports.
They said they feared they may never receive the money due to the dispute over the port's ownership.
CEO of Sudel Industries and creditor Kevin Moore said he was owed roughly $20,000 from Whyalla Ports.
"Basically, I've already written that money off. I don't think we'll see it."
Although the paperwork has not been filed, it is understood that the company will more than likely apply for a deed of company arrangement (DOCA) at its next meeting.
