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Sad and doleful tidings

Well, things are going from bad to worse. An American company offered to bail out Arrium to the tune of $1.4 Billion Dollars – $950 million and the remainder raised by Arrium Shareholders. The financial backers and creditors of Arrium  rejected the deal and trading was halted on Arrium in the Australian Stock Market. It’s not looking good and there is now talk of the major banks and

Dick Smith - empty and gone.

Dick Smith – empty and gone.

creditors extending a $400 Million loan to Arrium to try and pay off some of its debts, but the sting in the tail is that the Banks and Creditors will appoint an Administrator. We have had politicians, senators and others here all day and there was  one thousand people strong rally and march through part of the town – mainly around the CBD and the main street. And no, I was not involved in either. I was at the hospital with Annabell and later in the afternoon  we had Benji at the Vet for a check-up. We don’t know about injections and I have not managed to get much information from the rescue people so what we decided is to leave him for the moment and in a few months we will give him the five-in-one injection. Overall his health is very good although I did get a bit of a slap on the wrist because he has put on weight since his first visit in  November of last year. I find this difficult because he is well exercised – walks close to 60 miles a week – with me – is not overfed and does not get a lot of treats. And it’s a walk, not a casual stroll – with a few stops along the way. Anyway, I’ll have to cut down his food intake a little and get his weight down. Today (Wednesday) is not helping since it has been chucking it down for most of the night and it’s still raining.

Our major employer – Arrium Mining – has gone into Voluntary  Administration with  debts of over $4 Billion,  $3 Billion of which is owed to the banks, over $1 Billion owed to other creditors and $500 million owed to the Staff. Things are not looking good and trading has been suspended. But what  gets me is that the management have run the place into the ground, it owes money everywhere, but somehow it’s the Government’s fault. And the reason it’s suddenly the government’s fault is that the Federal Treasures and the Prime Minister didn’t visit with their cheque book and  hand over a free of any interest cheque for $5 billion and bail the company and its management out right there and then. Well it probably is the government’s fault and I just don’t understand how these things work. Things are not looking so good and there is now open talk of a break-up of the group and parts being sold off. It is a very worrying time for everyone and $5 Billion is a lot to make up and  in order to save the company and 8,000 jobs, the major loss making steelworks may have to be sacrificed. On the news tonight the government pleaded with Arrium management not to put the company into Administration, but the banks put pressure on the management and they caved in and appointed an approved Administrator.  In these last few days I  have met some of the people who were with Link Engineering and have lost their jobs. One family was the son of one of our families at church.

Sooha and Kongsoon

Sooha and Kongsoon

The new lady dog will arrive tomorrow at 8am. Sooah and her husband have to clear out the house this weekend so she is bringing me the lady tomorrow. Her name is Kongsoon, which is not too bad. The name, I found out means  “Little Bean” Sooah is of the opinion that she is coming back so really we are only fostering her dog for a while – at least that’s the plan. We’ll see – I hope she is right but I have my doubts  at least for the present. Well, there you are! I thought we were safe since my son didn’t work for Arrium however, he is a Systems Engineer with Logicamms and now that Arrium is in Receivership all contracts have been suspended until further notice.  Arrium cannot pay the contractors until the Receiver has completed  his investigation and authorities the money to be paid. Andrew is still being paid, of course, but the company now has someone sitting around doing nothing – and getting paid. This being the case, they want him to go down to Adelaide and assist with some of the projects they have  down there  – at least until Arrium is up and running again and authorized to pay out the cash to its contractors. However, the company have asked him to consider re-locating to Adelaide. So the Arrium crisis is  having an effect on us.

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7 comments on “Sad and doleful tidings

  1. I always get THE lokk from the vet when he looks on the scale :o) I hope everything works well and the Little Bean will love her new home :o) All fingers and paws are crossed for the Atrium and your town… I hope there is a solution and it will not end as an abandoned place on listverse.com once…

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    • Well the fingers have been bitten already and I have bandaids handy. But she is small, things are a bit scary for her and there is a BIG dog around ( well big to her) but give her time and she will settle down – and I can repair my fingers.

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  2. We have watched with sadness the business going into receivership..indeed companies behave like children when it comes to their handling of debt and the employees pay the price..imagine if people ran their household budgets the same way…i guess some do though..the problem is you can keep pouring good money after bad unless you look at ways to diversify or adapt a business to the times..i hope your little pup foster is that simply so her family can return to their jobs..a wise idea to hold the vacc’s..after a certain age most vets do not believe they are needed on a yearly basis anyway..as for the weight gain..little guy must be happy :)

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    • At the moment we really don’t know what is happening and although it seems to be “Business as Usual” – at least for the employees – the contractors are in limbo. I am quite happy with Benji and his weight and he seems to be too ; it’s only the Vet that has a problem with it ( weight gain of 1.3 kilo since October of last year) This foster? dog might be little but her teeth are sharp.

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  3. So very sorry about this economic news. Sadly things are the same everywhere, management runs a company into the ditch and expects the rest of us to pull them out. Fingers crossed the impact isn’t too rough and any domino effect minor. Good luck with weight management. We have found that a gradual reduction in portions was the easiest way to lose weight for any chubby pups. :)

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  4. We will reduce his food intake little by little and keep up the exercise, although at 6 miles a day I don;t know how much more we can do. Economically, things are still in a sort of limbo and at the moment for the employees at least, it’s business as usual. Not so for the contractors, they have to wait on the Receiver authorising payment.

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  5. Wow. Far too many corps are getting too big anymore. I wish we could go back to simpler times.

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