KordaMentha has lodged a court bid to seize control of Whyalla Ports from Sanjeev Gupta

KordaMentha has lodged a legal bid to seize control of Whyalla Ports back from Sanjeev Gupta’s GFG Alliance, arguing a ‘purported lease’ over the facility should be struck out.

A ship being loaded at the Whyalla port.

KordaMentha has lodged a legal bid to seize control of Whyalla Ports – the port operator adjacent to the steelworks – back from Sanjeev Gupta’s GFG Alliance, arguing a “purported lease” over the facility should be struck out.

In a short originating statement lodged with the Federal Court, KordaMentha and OneSteel Manufacturing – the owner of the steelworks which is now in administration – are seeking to have a “purported lease” struck out.

The administrators want the lease, agreed between OneSteel and Whyalla Ports, and which was entered into on June 29, 2018, set aside.

KordaMentha is also seeking an order “that the notice of termination and repossession of premises dated 27 March, 2025, and issued to the defendant on behalf of (OneSteel Manufacturing) is valid and effective’’.

The originating statement indicates the administrators are relying on the ability of an administrator to be able to “on the company’s behalf, by signed writing disclaim property of the company that consists of … a contract’’.

GFG Alliance executive chairman Sanjeev Gupta.

Federal Court judge Justice Mark Moshinksy made orders on Monday for the parties involved to head to mediation, and listed it for hearing on May 5.

Affidavits lodged in the matter indicate KordaMentha’s lawyers’ warned there was “extreme urgency and dire consequences of delay” in the matter.

Arnold Bloch Leibler partner Leon Zwier in an email to GFG’s lawyers stressed the need to bring the matter to a conclusion quickly.

“When the administrators proposed an immediate and speedy mediation they meant just that, an immediate and speedy one and not a slow, delayed, drawn out process over weeks as Whyalla Ports now proposes,’’ he wrote.

The port is owned by Whyalla Ports which is owned by Mr Gupta’s global GFG Alliance group.

It was a bottleneck in the early days of the administration, with several ships backed up in the waters off Whyalla waiting to be loaded.

The port is used by third party exporters as well as OneSteel, which uses it to export iron ore.

Mining services firm NRW Holdings, which has lodged a claim for $133m of debt against OneSteel, told the ASX in February that it had security over Whyalla Ports for the money it is owed.

“As part of its internal management processes, NRW Holdings and (subsidiary) Golding had been monitoring its payment receivables under the mining services agreement,’’ the company said.

“To protect its position, Golding previously obtained a guarantee and indemnity from both (GFG subsidiary) Liberty Primary Metals Australia and Whyalla, as well as first ranking security over the assets and shares of Whyalla Ports.

“NRW has various options regarding the enforcement of its security and will make a decision on the path forward based on the best interests of its shareholders and other stakeholders in what is a complex environment.’’

GFG Alliance has been contacted for comment.

Originally published as KordaMentha has lodged a court bid to seize control of Whyalla Ports from Sanjeev Gupta