“After considering the available alternatives, in the current circumstances it has become clear to the board of Arrium that it has, unfortunately, been left with no option other than to place the relevant companies into voluntary administration in order to protect the interests of stakeholders,” the administrator in a letter announcing the company’s decision.

The company took the step after it couldn’t find agreement with a syndicate of banks for a recapitalization plan with U.S.-based GSO Capital. The plan required that banks take a haircut on the debt.

Arrium operates the Wyhalla steelworks in South Australia, which has the country’s only rail mill.

The Sydney Morning Herald has more on the story here.