Companies owed hundreds of thousands of dollars by Whyalla Ports fear debts will never be paid

ABC NEWS (Australia)

Confidential sources owed money by Whyalla Ports say debts of hundreds of thousands of dollars have been left unpaid for six to eight months. It comes after the state government introduced amendments to the Whyalla Steelworks Act to clarify the ownership of the Whyalla port. KordaMentha and former Whyalla Steelworks owner GFG Alliance will head to court in June.

Transcript

00:00Burning brightly, the blast furnace at the Wailer Steelworks is back in business.

00:07That's now running at 2,800 tonnes a day, which is at its full capacity.

00:12One of a long list of things that have changed since Administrators Kordamentha took over in February,

00:18after the SA government intervened to take control from former owners, GFG Alliance.

00:23Now workers and creditors have been told potential buyers are taking a closer look.

00:27There's a variety of people who are interested in the steelworks.

00:30We're really focused on seeking a buyer that is a manufacturer who understands steel.

00:36Change in conditions are welcome relief for workers after years of uncertainty.

00:40There was a lot of people asking me should they go elsewhere to work?

00:45Should they be looking for different employment?

00:48I just had to keep telling them to be a bit positive.

00:51But another legal dispute is brewing with Administrators taking GFG to court

00:56to terminate their lease on the Wailer port, which Kordamentha says is crucial to prepare the steelworks for sale.

01:02Creditors say they're owed hundreds of thousands of dollars by the port and have been left in limbo.

01:08Speaking on the condition of anonymity, some say they have unpaid bills dating back six to eight months.

01:15They fear that even if Kordamentha wrests control of the ports from GFG, they won't be paid what they're owed.

01:23A government spokesperson says there are already a range of assistance schemes to assist businesses impacted by the situation.

01:31But administrators remain optimistic creditors will see their money returned.

01:36I should assume that company is solvent and that's going to pay its debts as and when they fall due.

01:40Another hurdle on an already bumpy road.

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