Alita will still exist after the liquidator goes through the process of investigating all outstanding issues, providing A40 has enough cash to cover all debt attributed to it. Alita will be liquidated and we lose our shares only if there is insufficient cash to cover debts owed.
Currently Alita has around $100m in the bank but will not have enough to pay the $202m ATO bill if it is deemed to be owed by Alita. The liquidators need to have the time to investigate whether the debt belongs entirely or in part to Alita or if it is really owed by Tawana or Lithco, which are the entities now owned by Min Res.
I suggest you speak to the liquidators on 08 6363 7600 to seek clarification of their role and objective in regards to Alita. A40 will not cease to exist if the liquidators are not terminated as you stated in your previous post. I received clarification on this question and others yesterday when I contacted them.
My main issue with terminating the liquidators now is:
If Min Res get control of A40, what incentive is there to attribute any of the debt to their entities rather than just load it on to Alita which they only have around 10% ownership of?
There will be a strong probabilty that A40 will wear the full debt cost and be liquidated with no return to shareholders if Min Res gets rid of the liquidators before the investigations are complete.
Min Res has taken our valuable assets for a song so why on earth would you give your executioner any more power over you.
Just my thoughts
A40 Price at posting:
8.2¢ Sentiment: None Disclosure: Held
