According to an EY letter dated December 29, the scope of work included contingency planning analysis that would estimate a range of what return financial creditors may get from the sale of Arriums assets.
It was my understanding it was a tool to be used in negotiations with lenders, Mr Bakewell told the court. To show them the difference in various options … That was the purpose, as it was described to me.
During December 2015 and into January and February 2016, Arrium was negotiating on a proposed capital restructure from either private equity firms Kohlberg Kravis Roberts or GSO Capital Partners.
Haircut for lenders
Initially, the KKR proposal would have required lenders to take between a 35 per cent and 50 per cent haircut on thei…
Read the full article at: https://www.afr.com/companies/manufacturing/arrium-used-ey-to-push-lenders-to-forgive-debt-20210316-p57b5p
