Arrium goes into administration

摘要

Australian iron ore and steel group arrium has been placed in administration, underscoring the uphill battle that highly indebted smaller companies face in competing with larger and more efficient sector giants. Arrium's decision on Thursday to enter voluntary administration and raise the possibility of a break-up or bankruptcy shows how creditors are turning sour on indebted resources companies in the current tough climate. Reuters data shows that at least 10 Australian companies in the materials sector hold debt three times their 2015 Ebita. Shaw & Partners analyst Peter O'Connor said these were levels seen during the global financial crisis and not a good sign.