Galaxy joins Alita legal proceedings, page-49

First 49 Last

Share
Profile

Follow
Haplo

17,101 Posts.

3842

25/02/21

08:02

Post #: 51304594
Share

Originally posted by Haplo ↑

I don't think the plaintiffs would like that outcome rather than a forced full liquidation.

In liquidation, they will have a greater chance of purchasing the assets in a sale as foreign companies will be blocked outright due to present FIRB rules. This is what happened to AJM. Not only was the debt so high but FIRB rules prevented them from any serious foreign bids in such a short amount of time.

Also, the way that the plaintiffs have structured themselves, GXY can lead even with a script bid for Alita as a company, and all the plaintiffs would still all benefit from it.

The only one who can press the button a re-cap is CHE. If FIRB comes back with a statement on their company ownership before the court case in the negative, then they may have no choice but to do this. Conveniently, that AFR Street Talk article read a copy of Rowsthorn's letter to FIRB and I have no doubt that the same letter will find its way to some Federal politicians as well.

Re-caping the company would allow CHE to swap debt for equity to as much as FIRB will allow. (9 - 19% depending on what's allowed). They may also be able to negotiate a board seat or two so that they may have some influence on where future offtakes may go.

Let's see what unfolds.

Expand

Also, I wouldn't be surprised if Jiangxi Special Electric Motor shows its face soon to lend support. They are the remaining top shareholder who hasn't reappeared as yet.

Although I think we can all guess which side they will support though.

A40 Price at posting: 8.2¢ Sentiment: None Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

EEG

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

CUF

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

HotCopper Highlights: Your most watched stocks for Week 46, 2024

3DA

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

GDM

Banshee's historic trenches prove rich in antimony and gold for GDM

BTH

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

CLE

Cyclone signs MOU with Vale for development of Iron Bear play

IRX

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

BNL

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

First 49 Last

Add A40 (ASX) to my watchlist

Galaxy joins Alita legal proceedings, page-49

Top Stories

NT Gov't delivers environmental approval for Empire Energy's Beetaloo Carpentaria pilot gas play

CuFe sells its Crossroads gold royalty to Northern Star for $4M cash; says better than waiting for mine launch

Week 46 Wrap: Copper hits 2mth low as Trump threatens net zero pace; US rally fades; HotCopper’s picks

HotCopper Highlights: Your most watched stocks for Week 46, 2024

To make modern missiles, you need 3D Printing. And in that gold rush, Amaero is selling shovels

Banshee's historic trenches prove rich in antimony and gold for GDM

Bigtincan's Board backs Investcorp offer: Why a NASDAQ listing could be game-changing

Cyclone signs MOU with Vale for development of Iron Bear play

InhaleRX gains approval for clinical trial to test non-opioid therapy for cancer pain

Blue Star Helium sees approval for five more wells at 'Galactica/Pegasus' project in Colorado

Featured News