Application plan for Whyalla Steelworks creditors and small businesses goes live

Details have been released on how small businesses and creditors can receive much-needed cash within weeks through the $2.4bn Whyalla rescue plan.

South Australian Premier Peter Malinauskas and Australian Prime Minister Anthony Albanese are pictured visiting the Whyalla Steelworks last week. Picture: NewsWire / Tim Joy

First news of how creditors and businesses can start getting much-needed cash under the $2.4bn Whyalla rescue plan is being revealed with the application process going live.

New Whyalla Regional Coordinator John Chapman has told how creditors and struggling small businesses can access vital funds to save their futures and is hoping dollars would take about “two weeks” to start landing in bank accounts.

Administrator KordaMentha is trawling through “the books” claimed from GFG Alliance’s offices in Sydney and Whyalla to verify unpaid bills owed to the hundreds of creditors Mr Chapman expected at a meeting in Whyalla on Monday.

Premier Peter Malinauskas and Australian Prime Minister Anthony Albanese visiting the Whyalla Steelworks in South Australia last week. Picture: NewsWire / Tim Joy

Prime Minister Anthony Albanese announced the money, which will be used to pay creditors, make plant upgrades and cordon off funding for a new owner when he and Premier Peter Malinauskas visited the town on Thursday.

“Subject to them fulfilling the criteria, they will be paid debts up to $5m in total,” Mr Chapman, who is also the state’s independent industry advocate, said.

Whyalla specific businesses would have a lower level of documentation proof to be paid up to $1m and this amount would be topped up if applicable once more detailed information was disclosed.

Mr Chapman said small businesses can start applying for a $10,000 grant where they can show a downturn of 20 per cent or more over a period to February 19, further information is expected to land on a new dedicated website on Tuesday afternoon.

New Whyalla Regional Coordinator and SA industry advocate John Chapman OAM. Picture: Supplied

There are also new staff bunking in with the state government’s hydrogen information hub office at Westland Whyalla Shopping Centre to help the process, with Mr Chapman saying processes were being developed for businesses to defer state taxes and various business charges.

Mr Chapman, who was small business commissioner when the Whyalla steelworks last fell into administration in 2016 following the demise Arrium, expected “hundreds of businesses to be creditors” and “one hundred-plus” small local businesses to apply for grants.

Skills commissioner Cameron Baker also was in Whyalla this week to work through ways to ensure apprentices in particular stayed in town to work at the steelworks and mines thrust into administration by the state government.

“It is unfortunate for the business that we are back to where we were in 2016,” Mr Chapman said, adding that one contractor said “we’ve been through this boom bust cycle for the past 50 years”.

KordaMentha also assured it had stabilised Whyalla Port and a backlog of ships stranded in waters outside the town were now being loaded and unloaded.

Administrator Mark Mentha confirmed that Whyalla Steelworks and mining was fully operational while administrators examined the financial position of the company and worked out a plan for its future.

“Since our appointment, we have been focused on stabilizing the business and ensuring work can continue at all sites,” he said.

“We have re-established relationships across the company’s supply chain, including with rail and utilities providers, to ensure business can continue during the administration.”

“Whyalla Port, which is not part of the administration, is also fully operational, with boats able to load and unload cargoes from the company.”

The new “source of truth” website providing details for creditors and businesses is whyallasupport.sa.gov.au