In the case of Ten Network and Orton Group the transfer was 100%. So if Section 444GA does get put into the DOCA by CHEL then is possible 100% of existing shareholdings will be transferred to CHEL with zero consideration to existing shareholders (and that will include GXY and Jiangte).
CHEL may as part of the recapitalization put in the DOCA say that they (CHEL) will put $X into a fund that will be used to pay off creditors and in return they get 100% of the equity by force.
Not saying this will happen. Just drawing attention to fact that could be an option. If so, then just like ordinary Alita shareholders GXY and Jiangte have loss on their equity.
A40 Price at posting:
8.2¢ Sentiment: None Disclosure: Held
