NRW Holdings Faces $113.3 million Exposure as OneSteel Enters Administration

Highlights:

• NRW Holdings (ASX: NWH) is owed $113.3 million by OneSteel Manufacturing, which recently entered administration.
• Golding Contractors, an NRW subsidiary, will continue working under an extended contract until January 31, with payments managed by administrators from February 19 onwards.
• NRW is evaluating its legal and financial options to recover outstanding payments, as Golding Contractors remains OneSteel’s largest single creditor.

Contract Extended While Payment Uncertainty Looms

ASX: NWH is owed approximately $113.3 million for its contract with OneSteel Manufacturing, the company that recently entered administration and previously owned the Whyalla steelworks. Despite the financial turmoil, NRW Holdings continues to provide services under an extended contract.

Ongoing Contract Amid Administration

In a statement to investors, NRW confirmed that its subsidiary, Golding Contractors, will continue working under an extended agreement with OneSteel's administrators. Payments for services rendered from February 19 onwards will be managed by the administrators, while NRW evaluates its next steps. The contract has been extended until January 31, allowing operations to continue as restructuring efforts unfold.

Assessing Recovery Options

NRW Holdings highlighted that it holds security over its claims and is assessing enforcement strategies in the best interest of shareholders and stakeholders. Given the complexities of the situation, the company is weighing multiple legal and financial avenues to recover outstanding payments.

Major Creditor Position

NRW subsidiary Golding Contractors is the largest single creditor of OneSteel Manufacturing, making its financial stake in the company's future significant. The administration process is expected to determine whether outstanding debts can be recovered or if NRW will need to absorb financial losses.

NRW’s next steps will depend on the restructuring progress at OneSteel and the administrators' ability to manage outstanding obligations. Investors will be closely watching the developments as NRW navigates this uncertain financial landscape.

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