Billing $1 million a week in remuneration suggests a truly frenetic degree of activity has attended KordaMentha’s attempts to rescue stricken steel maker Arrium.
Either that, or salaries offered to lure sufficient quantities of number crunchers to handle this complex and politically fraught appointment are at the top of the range or, given the fact the initial team has since contracted substantially, the appointees themselves are putting in more high-priced hours.
Last month Arrium transitioned from voluntary administration to deed of company arrangement (DoCA) after creditors endorsed a plan designed to reconfigure the group’s asset holding structure so as to facilitate a share sale of its viable assets.
Consequently, the four Kordas partners appointed as Arrium’s voluntary administrators on April 12, 2016 – Mark Mentha, Bryan Webster, Cassandra Matthews and Martin Madden – on November 4 became deed administrators.
Minutes of a meeting held in Sydney on December 1 show that Arrium’s committee of creditors signed off on a resolution to pay KordaMentha $4.122 million for four week’s work over a period commencing on October 24 and concluding on November 20. Each week during the period KordaMentha’s remuneration eclipsed $1 million.
Eight of the committee representatives voted in favour of the pay resolution, which was the only resolution put to the meeting. Three abstained and none opposed.
A form 524 statement of accounts for the Kordas’ partners’ final month as VAs dated December 2 suggests the bulk of the monthly million plus dollars has gone to minions and it was a sizeable team to begin with.
From October 12 to November 4 the four Kordas partners pocketed $45,931.07 in pay. For their entire period as VAs the Kordas’ foursome earned $807,312.57. Most instructive is that the quadrella of corporate resurrectionists racked up a relatively modest $13.105.24 in expenses for the term of the VA. Pretty restrained really.
The real eyebrow raisers will likely be the sums Arrium’s administrators have paid to lawyers. Perhaps the next form 524 will tell us.