Latest news with #WhyallaPorts
ABC News
21 hours ago
- Business
- ABC News
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.
ABC News
08-06-2025
- Business
- ABC News
GFG puts Whyalla port company into administration after government intervention
GFG Alliance has placed its subsidiary company which formerly operated the Whyalla port into administration, after the state government intervened in an ownership dispute over the facility. The company, Whyalla Ports Pty Ltd, was embroiled 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. The state government recently intervened by introducing law changes to "clarify" that the port is owned by OneSteel Manufacturing — the GFG subsidiary that operated the steelworks before being tipped into administration — rather than Whyalla Ports Pty Ltd. In a statement released on Saturday, a GFG Alliance spokesperson said the law change left it with "no option but to place Whyalla Ports Pty Ltd into voluntary administration". The spokesperson added that the company was "confident" the Federal Court case would have been decided in its favour "had the Australian legal system been allowed to determine the matter in the usual way". "Whyalla Ports revenue has been severely impacted by the actions of the South Australian Government," the spokesperson said. "Whyalla Ports Pty Ltd is unable to engage in any commercial activity after the termination of its lease and the seizure of assets by the South Australian Government at the request of the Administrators. "These actions have resulted in a complete stop in all revenue streams and therefore no ability to pay creditors." KordaMentha has continued to operate the port throughout the ownership dispute, while the state government said GFG's decision has no impact on the facility's operation. "The port continues to operate as usual," a state government spokesperson said. "The voluntary administration of any GFG operation is a matter for GFG." GFG claims that the administrators of the steelworks have "continued to use Whyalla Ports Pty infrastructure on land leased by Whyalla Ports without effecting payment for use of the land or infrastructure worth millions of dollars". But the state government claims that ministerial consent was required to lease the port and "this consent was neither sought nor granted". "The Government had complete confidence in the legal action undertaken by KordaMentha, however the legislative changes clarify the consequence of failure to gain consent and will ensure similar action will not be necessary in future," the government spokesperson said. KordaMentha sought to withdraw its legal claim against Whyalla Ports at a Federal Court hearing on Tuesday, saying the government's law changes had achieved what they were seeking. But the court also heard a cross-claim by the defendant, Whyalla Ports, would continue, with their lawyers telling the court there is still a dispute over the ownership of some assets. The matter is expected to go to trial in August. GFG said on Saturday that its decision to appoint administrators for Whyalla Ports will have "no operational impact on the rest of GFG Alliance".
ABC News
14-05-2025
- Business
- ABC News
Administrator KordaMentha updates Whyalla Steelworks creditors and workers
An update on the administration of the Whyalla Steelworks in South Australia today has informed workers and creditors that $100 million has been spent by administrator KordaMentha so far. The South Australian government forced the steelworks into administration in February after the business, owned by GFG Alliance, failed to pay tens of millions of dollars in royalty payments to the government and millions in unpaid bills to creditors. KordaMentha partner Sebastian Hams said the $100 million had been spent on restoring inventory, sustaining capital expenditure and improving the site's safety. He said site visits from prospective buyers were underway. As for taking on the debts of Whyalla Ports Pty Ltd, Mr Hams said the administration was over One Steel Manufacturing Pty Ltd only. "[Whyalla Ports] is not in administration, and therefore I should assume that company is solvent and that's going to pay its debts as and when they fall due." Mr Hams said the blast furnace at Whyalla was now operating at its full capacity of 2,800 tonnes a day, "which means it's now running in a stable environment", but its life span was uncertain. "The new buyer will come in with new technology and a different mindset, so it's entirely dependent on what a new buyer wants to do," he said. Mr Hams would not reveal how much the loss in daily profit had been reduced. "The loss pre-appointment was running at about $1.5 billion a day," he said. "It moves on a daily basis, but it's significantly less. "We're really focused on seeking a buyer that is a manufacturer who understands steel … and understands the value in the mines." The state government moved to clarify Whyalla port's ownership by introducing amendments to legislation in parliament on Tuesday. Premier Peter Malinauskas told the parliament that the government would introduce amendments to the Whyalla Steelworks Act to show the port was owned by former steelworks owner OneSteel Manufacturing. One creditor who wished to remain anonymous told the ABC they were owed $100,000 to $200,000 by Whyalla Steelworks, with 10 to 15 per cent of this being from the port alone. They said they feared they may never receive the money owed to them from Whyalla Ports Pty Ltd due to the dispute over its ownership. "I don't think it's going to happen unless we put a letter of demand in to GFG, Sanjeev Gupta and his stakeholders," they said. "We're going through legal advice now." Another creditor who did not want to be identified said they were owed $20,000, outstanding for around seven months past the due date of payment. They said they did not realise Whyalla Ports was a separate company until a few weeks ago. "If we had known that, we probably would have done things a little bit differently in regards to the Whyalla Ports," they said. "A bit disappointing we had to find out the hard way." Steelworks employee Sue Kelly said the safety of the plant had been seriously lacking under GFG Alliance, but it had got "a lot better" since KordaMentha took over. "Even to the degree of our … PPE [personal protective equipment]," Ms Kelly said. Australian Workers Union local branch organiser Shane Karger said it was "fantastic to have the real situation put out to the people". "To develop a relationship that we have now with KordaMentha that is open and honest is definitely something that we would like to maintain going forward with new buyers," he said. "We'd hate to get to a situation where it's all cloak and dagger again, it's all secrets behind closed doors, and eight years down the track we're 'oh no, the steelworks is in trouble again'." GFG Alliance has been contacted for comment.
