BlueScope Steel (ASX:BSL) Financial Chief David Fallu said Whyalla is in a "very challenged" situation, The Australian reported Thursday.
Whyalla, a company placed into administration by the South Australian government, is located in a remote location, said Fallu, as BlueScope is still considering its takeover.
Fallu called it a "government challenge" because of its distance from town, according to the report.
BlueScope is providing advisory support to the administrators while it remains the leading bidder for the company, said the report.
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