ADMINISTRATORS of the Whyalla steelworks, KordaMentha have gone to court to wrest control of Whyalla port from GFG Alliance.
It has initiated legal proceedings in the Federal Court to gain control of the port as part of its administration of the financially troubled Whyalla steelworks.
Reports in the Australian newspaper and on the ABC on 9 April said KordaMentha was arguing that control of the port is essential for preparing the steelworks for sale.
The port lease is held by OneSteel, a GFG subsidiary, which was placed into administration because of financial difficulties. It has debts of around $1 billion which prompted the South Australian government to place it into administration.
According to the Australian KordaMentha has asked for a lease between OneSteel and Whyalla Ports to be set aside.
Federal Court judge Justice Mark Moshinksy ordered both parties to go for mediation, listed for hearing on 5 May.
Following the steelworks being placed under administration the state and federal governments committed to a $2.4 billion bailout of the steelworks.
The private port next to the steelworks is critical for the export of iron ore and steel and continues to operate.
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