NRW Holdings in trading halt after new Whyalla Steelworks bill
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The news: NRW Holdings shares are in a trading halt as the construction and mining contractor prepares to make a statement on the impact of proposed South Australian legislation on the ownership of Whyalla Port.
Trading will remain halted until the earlier between Friday or when the announcement is released to the market.
The context: The SA government's legislation comes three months after Whyalla Steelworks' owner GFG Alliance was put into administration.
NRW is considering the impact of the proposed legislation on its subsidiary Golding Contractors, the largest single creditor to GFG Alliance subsidiary OneSteel, the owner of Whyalla Steelworks.
On Tuesday, the South Australian state government proposed amendments to the Whyalla Steelworks Act to clarify that OneSteel is the owner of the port, not Whyalla Ports Pty Ltd, a separate company also owned by GFG.
The bill clarifies that an agreement signed by OneSteel to lease the port to Whyalla Ports never had legal effect because prior consent from the state government was not obtained.
The administrator of the steelworks, KordaMentha, launched court action against GFG Alliance in April regarding the status of Whyalla Port.
The sources: ASX, ABC News , AFR, Capital Brief
