IMPORTANT UPDATE

TO AWU MEMBERS EMPLOYED IN THE ARRIUM GROUP

STAYING INFORMED - 13 APRIL
Your Union has set up a dedicated website that will host all relevant updates
and information as it comes to hand. Please visit www.awusteel.com.au to
stay informed.

ARRIUM GROUP ADMINISTRATION

AWU members employed by the Arrium Group who are owed a debt by the Group as at 7 April 2016 are creditors.
The AWU wants to protect the interests of its members in the administration of the Arrium Group.

FIRST CREDITORS MEETING

The Administrators of the Arrium Group have scheduled a first creditors meeting for 19 April 2016.

COURT APPLICATION BY THE AWU TO REPRESENT AWU MEMBERS FIRST CREDITORS

MEETING
Yesterday, the AWU made an urgent application to the Federal Court of Australia about the creditors meeting.
The Court made an order which allows the National Secretary, Scott McDine, to represent AWU members at the
creditors meeting, except if a member:
nominates a different representative by proxy or power of attorney to attend the creditors meeting; or
attends the creditors meeting personally.
The Court order means:
Scott will be allowed to vote and speak at the creditors meeting on behalf of AWU members; and
AWU members who want the AWU to represent them at the creditors meeting will not have to fill out and return
the proxy form which the Administrators will send all Arrium Group employees.
A copy of the Court order is available at www.awusteel.com.au

PROXY FORM
The Administrators will send you a Proxy Form for the First Creditors Meeting.
AWU Members who want Scott McDine to represent them at the First Creditors Meeting, do not have to fill out and
return the Proxy Form

IMPORTANT UPDATE

TO AWU MEMBERS EMPLOYED IN THE ARRIUM GROUP

STAYING INFORMED - 13 APRIL
COURT APPLICATION BY CREDITORS AND AWU APPOINTMENT OF NEW ADMINISTRATOR
Why does the choice of administrator matter?
The decision regarding which firm is appointed to manage the administration of the Arrium is extremely important.
The voluntary administrator assumes control of the company during the administration process in place of the board
of directors. This means they play a critical role in determining the future direction of the businesses.

Why change to KordaMentha?

After carefully considering advice we have received from a number of sources, the AWU formed the view that we
need an independent administrator and that KordaMentha is the best choice in this regard.
Arriums board originally appointed Grant Thornton with no input from the AWU or other creditors. It is the AWUs
belief that KordaMentha has a more suitable track record to dealing with an administration of this size and type.

Strong record
KordaMentha managed the Ansett administration in 2001 a very large-scale process that is similar in size to the
current Arrium situation. It is worth noting that administrations of this scale are rare in Australia and thus experience
handling these matters is vital.

Worker interests
Workers received 100% of their entitlements from the Ansett administration process.

Independence
KordaMentha have had no previous involvement with Arrium or other creditors associated in this process. They will
bring a clear, independent approach that is in the best interests of members and the company.

Positive discussions
Initial discussions with KordaMentha have been very positive and have confirmed our decision that they are best
placed to handle this administration in the interests of workers. The AWU has been strong in voicing its preference for
KordaMentha over other potential replacement administrators.

Committee of Creditors
A committee of creditors consult with the Administrators and consider reports from the Administrators.
The AWU intends to have officials on the Committees of Creditors so that we can properly represent the interests of
AWU members in the administration.

STAY UP TO DATE WITH LATEST DEVELOPMENTS AT: www.awusteel.com.au

CONTACT US:

1300 885 653

@AWUnion

facebook.com/AustralianWorkersUnion

FOR THOSE WHO NEED HELP DURING THIS DIFFICULT TIME PLEASE CONTACT LIFELINE ON 13 11 14