A40 alita resources limited

Alita Restructuring_ Final Countdown, page-11

  1. 11,351 Posts.
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    As the letter says, CHEL will seemingly be taking over the debt and the security.

    This, in itself, does not give rise to the issuance of shares to CHEL because the ledger remains largely the same except A40 (apparently) will have less interest to pay and the debt will be held and secured to CHEL.

    It raises a good question, though, of why would CHEL do that in isolation? Well, they probably wouldn't. Their overarching proposal may be to provide money - in exchange for equity - to pay down creditors, or otherwise allow A40 to pay off the prickly ones and get an agreement with the rest.

    The downside for GXY is that they may end up looking a bit silly for rocking their own boat, and coming out worse off for it.

    Who knows how it will pan out.
 
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