02/12/2019 - 16:07

Galaxy receives Alita debt repayment

02/12/2019 - 16:07

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Galaxy receives Alita debt repayment
Galaxy says it will use the funds to repay debt drawn down by the company to fund the acquisition.

Alita Resources has repaid $US32.5 million ($A47 million) to its major shareholder and creditor Galaxy Resources, which confirmed today it would not pursue its planned acquisition of the lithium miner. 

The announcement comes three days after Alita entered into a binding $70 million loan agreement with China Hydrogen Energy, with Alita administrators KordaMentha saying it would use most of the funds to repay the amounts owed to Galaxy.

Galaxy said it would use the funds to fully repay corporate debt of $US31.1 million ($A46 million) drawn down by the company to fund the acquisition.

It said the funds received include the facility principal, and accrued interests and costs associated with managing the facility.

The costs and expenses of the receivership will be met from funds held by the receiver manager and will not be deducted from the facility.

Galaxy’s status as creditor to Alita ceased upon repayment of the facility.

 

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