Arrium’s lenders have been accused of looking after their own interests by forcing out the company’s chosen administrators, which could delay the troubled steelworks’ restructure.
The steelmaker has debts of up to $4 billion and went into voluntary administration last week.
Original administrator Grant Thornton was forced out after a Federal Court ruling yesterday and replaced with insolvency firm KordaMentha.
Whyalla acting Mayor Tom Antonio said the decision had taken everyone in the community by surprise.
“I think the banks have stepped in for their own personal interest and I am just not comfortable with that,” Mr Antonio said.