https://thewest.com.au/business/mining/pilbara-minerals-taps-aust...

https://thewest.com.au/business/min...collapsed-lithium-miner-altura-ng-b881705670z

Altura mounts rearguard action to prevent fire sale

Stuart McKinnonThe West Australian
Wed, 28 October 2020 8:42AM
Stuart McKinnon


Lithium miner Altura Mining has launched a rearguard action to stave off a fire sale of its assets to rival Pilbara Minerals by putting a formal recapitalisation proposal to its receivers and administrators.

Advisers to the company, Azure Capital and Canaccord Genuity, have written to KordaMentha and Cor Cordis proposing a full recapitalisation of Altura that would see the debt of its lenders repaid in full, save their roughly 10 per cent equity stake in the company and protect about 13,000 other shareholders from receiving nothing back on their investments.

The letter also argues the proposal will keep Altura’s namesake mine running and save the jobs of about 100 workers.

WestBusiness understands Altura had agreement in principle for a capital raising that would have satisfied its lenders owed more than $250m on Sunday before the rug was effectively pulled from under the company when hedge funds led by Castlelake and CarVal opted to call in receivers.

It is understood the move was precipitated by a proposal from rival lithium miner Pilbara Minerals to purchase Altura outright.

Pilbara Minerals is understood to have tapped AustralianSuper and Resource Capital Funds to help fund the deal as part of a $230m equity raising.
Shares in Pilbara — which operates the Pilgangoora mine adjacent to Altura and mines its lithium spodumene from the same ore body 100km south of Port Hedland — have been placed in a trading halt ahead of an announcement.
The Pilbara raising would allow it to repay Altura’s lenders, clear its debt and assume control of its assets.
Pilbara, along with another WA lithium miner in Galaxy Resources, had been in the data room for Altura as it tried desperately to refinance its more than $250 million in debt to satisfy its lenders, including hedge funds Castlelake, CarVal, Nomura and Clearwater Capital.
But it is believed Pilbara circumvented the process, putting a deal direct to noteholders, which prompted them to put Altura into receivership.
It is understood Altura’s board was blindsided by the move, believing they could meet an October 31 deadline to refinance the company via a $150m capital raising....
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