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Banks at risk of bad-debt blowout as Aussie steelmaker collapses

Arrium hands control to administrator after lenders reject its US$927m recapitalisation plan

BLEAK OUTLOOK: Arrium flagged in February it may mothball its loss-making Whyalla plant and last year shuttered iron-ore mines and booked writedowns. Its underlying net loss in the six months to Dec 31 widened to A$24 million from A$22 million a year earlier.


COMMONWEALTH Bank of Australia and its competitors are staring at a potential blowout in bad-debt expenses as they try to claw back a combined A$1 billion (S$1 billion) of loans to steel and iron ore supplier Arrium Ltd, underscoring the looming threat to lenders from the

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