Troubled steel and mining group Arrium's administrators are negotiating with its lenders to secure funding of about $200 million to ensure the company is able to continue its normal business operations.
Administrator KordaMentha said the company currently has a strong cash position, but it is looking to secure funds for ongoing requirements.
"So far, we have been able to manage cash flows within the requirements, but there may come a point where we need to manage trading in respect to some critical supplies, or to manage capex requirements," administrator Mark Mentha said on Tuesday.
"We have had negotiations with the banks to provide credit facilities. We are looking to have a facility of around a couple of hundred million dollars."
The company would need to provide some sort of security against the funding, he said.
Arrium entered voluntary administration earlier this month after failing to win the support of its lenders for a $US927 million ($A1.22 billion) lifeline from US private equity fund GSO Capital Partners.
Advisory firm Kordamentha replaced Grant Thornton as the administrator of the company after the major lenders and workers union reached an agreement to get their way.
Arrium currently owes total debts of around $4 billion, including $2.8 billion due to Australia's four major banks and several global banks. The balance includes dues to nearly 8000 employees, US bond holders, and trade creditors.
"At this stage we probably are in the best cash position in some time. We have got the advantage of not having paid creditors from the time of administration, and we continue to generate sales from goods that have been supplied," Mr Mentha said.
The administrators' work will involve investigating the events leading up to the current state of the company and identifying priorities for its restructuring.
Earlier on Tuesday, Arrium's creditors voted to appoint a committee of their representatives to deal with the administrators.
A committee of about 15 representatives, which included Australia's four major banks, employee unions, the South Australian government, the federal government and US bondholders was finalised at the first creditors' meeting in Sydney.
A representative of GSO Capital Partners, which is owed around $100 million, and is a potential bidder for the company's assets, was excluded from the committee by a majority of creditors.
The administrators expect to seek an extension to the four-week time limit for the second meeting, where they will submit a detailed report to creditors.
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