Debt-laden steelmaker Arrium should be sold off to the highest bidder, its creditors have been told.
Administrator KordaMentha has released a report arguing “it is more practical to sell the businesses” held by the South Australian group than to wind it up.
This would increase the chances of Arrium continuing as a business and provide a better return to creditors than liquidation, assuming a potential sale price of more than $20 million.
“It is our opinion that it would be in creditors’ interests,” KordaMentha said in the report dated October 26.
However, KordaMentha also signalled potential issues with Arrium trading while insolvent for a time and entering “voidable” transactions before it went into administration in A…
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