Alita Resources replies to SGX queries on application for power to transfer shares

CATALIST-LISTED lithium miner Alita Resources on Tuesday night replied to queries from the Singapore Exchange (SGX) on its application under section 444GA of Australia's Corporations Act - which allows a deed administrator to transfer shares if court approval is obtained - in line with a rescue plan that will result in Alita's eventual delisting.

In December, Alita's creditors had approved a deed of company arrangement (DOCA) for the acquisition of Alita's assets. This is a rescue plan, under Australian law, that lets a company restructure its debt and avoid insolvency.

The DOCA had been proposed by Chinese firm China Hydrogen Energy and its Australian unit Liatam Mining. Under the DOCA, 100 per cent of Alita's shares would be transferred to Liatam for nil consideration.

Court approval for a transfer of shares under section 444GA is only given if the court is satisfied that the transfer would not unfairly prejudice the interests of members of the company.

Under an initial timetable released by Alita, an expert report and an explanatory statement describing the section 444GA process would be made available to shareholders by Jan 3. This was later changed to Jan 10. The deadline for shareholders to enter an appearance remained unchanged at Jan 29.

SGX asked Alita to explain why the timetable for actions after the release of the statement and report had not been shifted to a later date, given the delay in said publication. Shareholders should be given sufficient time "to review, digest, decide and raise relevant concerns", objections or questions, said SGX. "Only then will they be able to enter into meaningful appearance."

Alita replied that under Australian laws and regulations, 14 days before the directions hearing - which is scheduled for Jan 30 - "would generally constitute sufficient notice to shareholders for this purpose".

SGX also asked Alita to provide more details on the bases and justifications for the section 444GA application and how shareholders' investment and interests are taken care of, as shareholders may have their investments transferred at nil consideration. Alita said this will be disclosed in the explanatory statement and expert report.

SGX further asked what other steps the deed administrator KordaMentha will take to provide clarity to shareholders, answer their questions, "and ensure all comments, concerns, questions and objections from shareholders are duly and fairly taken up and presented to the court".

Alita replied: "The deed administrators continue to consider what arrangements, if any, might be appropriate in this regard, and will provide guidance following the release of the explanatory statement and the accompanying expert report."