Alita Resources Creditors Approve Rescue Plan From Potential New Owners

The creditors of Catalist-listed lithium miner Alita Resources have approved a deed of company arrangement (DOCA) from a Chinese firm for the acquisition of Alita's assets, the Business Times reported. China Hydrogen Energy (CHE) and its Australian subsidiary Liatam Mining had proposed the DOCA this month. CHE is a special purpose vehicle for an unidentified Chinese party. In Australia, a DOCA is a rescue plan that allows a company to restructure its debt and avoid insolvency. It is a binding arrangement between the company and its creditors governing how the company’s affairs will be dealt with. Alita's deed administrators KordaMentha will apply to the Supreme Court of Western Australia to transfer 100 per cent of Alita shares to Liatam for nil consideration. If successful, this will result in the delisting of Alita from the Singapore Exchange (SGX) and the Australian Securities Exchange. Read more