KordaMentha partners charge hourly rate of $795, latest publicly available figures reveal

KordaMentha has worked on some of Australia’s most complex administration cases and command an eye-watering amount an hour. Here’s what the new administration of the Whyalla steelworks will be paid.

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The four KordaMentha partners appointed to oversee the administration of the Whyalla steelworks will be paid tens of thousands of dollars a day.

The Advertiser can reveal Mark Mentha, Michael Korda, Lara Wiggins and Sebastian Hams each command an hourly rate of $795, according to latest publicly available figures.

They’ve been installed to stabilise the steelworks operations, pay creditors and seek a new owner after Sanjeev Gupta’s GFG Alliance was ousted as the operator on Wednesday.

GFG Alliance’s subsidiary OneSteel owes more than $300m to creditors in South Australia and tens of millions of dollars in royalties to the government.

The Whyalla steelworks will remain in operation while in administration, according to KordaMentha. Picture: Nicholas Williams-Chamarro.

KordaMentha confirmed they intended to keep the steelworks and its iron ore mining operations going during administration, protecting 4000 direct and indirect jobs.

“As administrators, our job is to examine the financial position of the company, stabilise the business and maximise the chances of the business continuing in the interests of all stakeholders,” Mr Mentha said.

“This may take some time, but all parties are committed to ensuring the business remains operational while we work out a plan for its future, securing new investment and possibly transitioning to new ownership.”

According to 2022 figures, KordaMentha’s hourly rates for principal appointee/partner/executive was $795, managers $595 and administration staff $200.

The insolvency firm has worked on some of Australia’s most complex administrations, including the collapse of Ansett Australia.

In SA, it’s history included being appointed administrators of the steelworks in 2016 after taking over operations from Arrium, which had debts of $4bn.

Documents from the corporate regulator showed KordaMentha was paid at least $14m to manage creditor payments disbursed through the Arrium Creditors Distribution Company, which paid back $600m over a number of years.

GFG Alliance executive chairman Sanjeev Gupta and Mark Mentha. (AAP Image/David Mariuz)

Mr Gupta purchased the steelworks from administration for $700m – GFG’s largest ever single investments – after financing issues arose with a Korean consortium.

Premier Peter Malinauskas and Prime Minister Anthony Albanese were in Whyalla on Thursday to announce a $2.4bn rescue package to secure the steelworks and jobs.

It included $100m for on ground support, including $50m for creditor assistance payments.

“Now that the Steelworks is no longer under the control of GFG, the State Government can partner with the Federal Government and make the long-term investments necessary to secure the future of Whyalla and Australian steel making,” Mr Malinauskas said.

“We are stepping up to provide immediate on the ground assistance for local workers and businesses, we are stabilising the steelworks and we are setting the steelworks up for long-term prosperity.”

Premier Peter Malinauskas addresses the media during a visit to the Whyalla steelworks with Prime Minister Anthony Albanese. Picture: Tim Joy

The previous Liberal government also appointed KordaMentha in 2018 to restructure SA Health’s biggest department, the Central Adelaide Health Network, and save $276m in three years. The company had a government contract worth about $45m.

KordaMentha will reveal its hourly rates and an estimate on their remuneration in a report to creditors on Monday, ahead of its first creditors meeting on Monday, March 3.

Originally published as KordaMentha partners charge hourly rate of $795, latest publicly available figures reveal