Grant Thornton excoriated over Arrium

Westpac restructuring chief
Gwyn Morgan. 

HELL hath no fury like a banker denied the voluntary administrator (VA) of his choice, as Grant Thornton's Paul Billingham discovered during his truncated tenure as VA of Arrium.

As a result of accepting the appointment, SiN understands at least four receiverships were lopped from GT's advisory division in a day.

The axe was wielded by Westpac's restructuring chief Gwyn Morgan, who wanted good mate Peter Andersen's firm McGrathNicol installed to recast Arrium's slag heap of unsecured debt into an LME-grade recapitalisation. 

Morgan was apparently apoplectic when GT consented to act. SiN understands he expressed his displeasure by phone. Andersen - perhaps unwilling to have his own high dudgeon eclipsed - sent a "strongly worded" email.

Of course, such a set of events presumes that Westpac and the other three major banks - squirming on the hook for a collective $1 billion unsecured - believed McGrathNicol could be seen to act for all creditors with the appearance of independence.