I am really late to the party and not read through all the posts, because I didn't know our stock ticker was still active (and I had wished to confine my massive loss and the punchable face of old mate Calderwood to a distant memory). Great info from those above and those that attended the court.
After doing some reading, it would seem that the 3 1/2 year FIRB related delay to the Austroid DOCA (from Dec 2019), and now rejection? (July 2023), may have saved our sorry arses. In that time, the valuation of lithium mines has skrocketed, and just now as the Chinese are close to being booted, A40 may be newly up for sale.
And instead of the whole company going to Austroid, for the secured $70 million owed, hopefully we now have a bidding war.
MinRes wants it because they have a hand in almost every surrounding Goldfields tenement field via ownership (Mt Marion), or a stake in juniors (Develop, Essential, Pantoro) and they are keenly expanding their lithium portfolio away from Chinese influence. And Bald Hill is a producing mine, not an over valued $6 billion explorer like LTR
Regarding who is the good and who is the bad, looks like both parties were interested only in serving Austroid
- McGrathNicol has been the subject of hefty shareholder criticism that Bald Hill was being sold on the cheap to Austroid given the recovery in lithium prices
- The mine is held by KordaMentha, which was put into Alita simultaneously in 2019 to protect Austroid’s interests
and now that the Fed Gov has saved us from that fate, looks like both parties have changed their tune
- McGrathNicol believes it can now move to scrap the Austroid DOCA as no longer being in Alita’s best interest, ... and its new sale could proceed because such a deal would enable Austroid to be paid out and the receivers retired
It is understood that under MinRes’ deal with McGrathNicol, that debt would be paid out in full and a significant return made to Alita’s shareholders, who stand to receive nothing under Austroid’s deed of company arrangement. The DOCA is dead surely, meaning, once other creditors, lawyers, administrators, etc, all get their full cut, shareholders may still get a
"significant return"The Deed Administrators have commenced legal action in the Supreme Court of Western Australia to place Alita into liquidation, enabling the implementation of MinRes's acquisition plan.Should the court appoint a liquidator, MinRes is set to settle the secured debt and secure Alita's stake in the Bald Hill mine. The transaction's value depends on several factors, including an independent expert valuation.Do we need to be in liquidation to get bought out
Hoping that whoever wins the case b/w KordaMentha and McGrathNicol put the company up for sale, and in a bidding process, extract maximum value for a producing mine in a bouyant market. Selling to MinRes in a secret deal based on an an expert valuation is insufficient imo.
Now to value and possible return to shareholders:
Sale price: $1 billion? Conservative, but in the absence of proper market bidding may be close
SOI: 1,476,422,411 from what I can find
Secured debt: $70 mill to Austroid
Unsecured creditors, lawyers, administrators and liquidators: unkown
Our MC when we went into liquidation was $121 million
An estimated $1 billion sale price has a sh!tload of cash to pay debts and still supersede our last closing price, meaning we as shareholders must get something
last closing price of 0.082c per share would be the base case I'd expect
Now just need to reverse the Section 444GA court order that transferred our shares to the DOCA Proponent "
for nil consideration" back to us shareholders
