Arrium Group’s Insolvent Trading Action

Arnold Bloch Leibler, Baker McKenzie, Clifford Chance, Gadens, Gilbert + Tobin, HWL Ebsworth, Johnson Winter & Slattery, King & Wood Mallesons and Norton Rose Fulbright have all got jobs with various plaintiffs and defendants.

Three separate legal actions spawned by the collapse of the Arrium Group in 2016 commenced in March in the NSW Supreme Court. 

KordaMentha launched its action in July 2019 against 10 former Arrium directors for alleged insolvent trading.

The former board of Arrium was warned it would be difficult to get its lenders to agree to forgive as much as half the money owed to them, which would make a proposal to restructure its debt tough to get over the line, the lawyer for the collapsed steelmaker’s liquidator says.

Lenders were first made aware of a proposed capital restructure from GSO Capital, a subsidiary of private equity firm Blackstone, on February 22, 2016. The proposal was agreed by the Arrium board and would require lenders to agree to a 45 per cent haircut to their owed debts, or a total of $1.238 billion, according to a presentation by investment bank Lazard to the board on February 4, 2016.

The Arnold Bloch Leibler representing Arrium Liquidators from KordaMentha is led by partner Caroline Goulden (Picture). 

Michael Borsky, QC, is representing Arrium’s liquidators, KordaMentha. 

 

Involved fees earner: Caroline Goulden – Arnold Bloch Leibler;

Law Firms: Arnold Bloch Leibler;

Clients: KordaMentha;

Sonia Carcano

Author: Sonia Carcano