SGX RegCo directs Alita Resources to apply for time extension for rescue plan hearing

THE Singapore Exchange's regulatory arm (SGX RegCo) has directed Alita Resources to apply for an extension of time for an Australian court hearing, related to its rescue plan that would see all shares in the Catalist-listed lithium miner transferred to another firm for nil consideration.

Alita Resources is also required to hold an information session for Singapore shareholders on the matter, said SGX RegCo in a notice of compliance issued on Wednesday.

Alita went into administration in August 2019. In December, its creditors approved a deed of company arrangement (DOCA) proposed by China Hydrogen Energy and its subsidiary Liatam Mining, which would see Alita's eventual delisting.

Under the DOCA, the administrator has to obtain a Section 444GA court order, which would allow the transfer of 100 per cent of Alita shares to Liatam for zero consideration.

In this process, shareholders have the right to provide their views. Under a timetable announced by Alita, the deadline for providing views is Jan 29, with the court hearing scheduled for Jan 30.

The Section 444GA application was made on the basis that Alita's shares have no value. An expert report on the value of Alita's shares is being prepared, with both this and an explanatory statement on the Section 444GA process meant to be available to shareholders by Jan 3.

However, on Jan 3, the administrators said the report and statement would only be issued on or around Jan 10. The other relevant dates were not changed.

Under Australian law, the court may approve a Section 444GA application if it is satisfied that this compulsory transfer would not unfairly prejudice the interests of shareholders. Noting this, SGX RegCo said it is of the view "that it is important, and in the interest of shareholders, that sufficient time be given for shareholders to carefully review the expert report and provide their views ... for due consideration".

It added that the administrators have so far not publicly provided information to shareholders on what efforts have been made to safeguard their interests when proposing the DOCA.

SGX RegCo thus requires the administrators to apply to the court for an extension of time, and hold a session for Singapore shareholders to understand the matter and provide a platform for them to share their views collectively.

Failure to comply with requirements imposed by SGX shall be deemed a contravention of Catalist rules, it added.