Creditors of the Whyalla Steelworks have come together for the first meeting with administrators Korda Mentha.
The meeting addressed the facility’s former owner OneSteel’s debt, which has ballooned to an estimated total of $1.3 billion.
This includes about $189 million in outstanding employee entitlements, $40.2 million in unpaid water bills and mining royalties to the South Australian government and $569 million owed to associated entities of OneSteel’s parent company, GFG Alliance.
A further $437 million is also owed to trade creditors and suppliers, according to KordaMentha.
The Steelworks were losing $1.5 million a day before it was forced into administration last week.
There has also been concern surrounding the lack of spending on maintenance for the plant, with the Steelworks relying on ‘luck for safety’ in its final days before the State Government took control.
In a statement made yesterday, GFG Alliance said they remain committed to working cooperatively with the administrators to ensure the sustainability of Whyalla’s operations and will fully support a viable long-term solution for the future of the Steelworks.
