Is this Bad for Tianqi? Tianqi Lithium announced on the evening...

Is this Bad for Tianqi?

Tianqi Lithium announced on the evening of November 14 that, according to the loan agreements signed with banks headed by CITIC on merger loans, a USD1.884 billion loan will be due at the end of November 2020, which amounted for 179.35% of the company's recently audited net assets. The company has submitted application to the banks on extending loan deadlines; but as the application is still under review, the company is subject to defaulting possibilities since deadlines of some due loans are not extended while the company is unable to repay on time and in full amounts.

Now, Tianqi Lithium and its controlling shareholders are still seeking to introduce strategic investors into the company, but no binding investment agreements have been signed.

Tianqi Lithium also mentioned that there are no substantial changes happening to some of its in-construction projects now, but with no further investment injected, possibilities can't be ruled out that the company may not be fully paid back for previous investment of such projects as Suining 20,000tpy lithium carbonate plant project and 24,000tpy battery grade lithium hydroxide project