Hope on the horizon for Alita

The Supreme Court of Western Australia has agreed to delay a creditors meeting of Alita Resources, as its administrators assess more than 11 proposals that could revive the fallen lithium miner.

KordaMentha’s Richard Tucker and John Bumback sought an extension of the convening period for the second meeting of creditors in relation to Alita, citing numerous potential options to recapitalise and restructure the companies through a deed of company arrangement (DOCA).

“A number of possible DOCA proponents have been identified,” the Supreme Court document stated.

“The possibility of a DOCA is more than remote…Mr Bumbak deposes to having received 11 unsolicited approaches.

“Mr Bumbak, based on his experience as a registered liquidator, deposes to a belief that at least some of those potential third party proponents have access to sufficient resources and technical expertise to put forward a viable DOCA proposal that would warrant further investigation.”

Galaxy Resources, which is Alita’s largest shareholder and secured creditor, confirmed that it supported an application for the extension of the convening period for up to three months.

Justice John Vaughn agreed to delay the second meeting from September 25 to December 11, with potential for a further extension.

On August 29, Alita went into administration just two days after Galaxy struck a deal to buy the company’s $42 million in secured debt.

The next day Galaxy appointed KPMG as receivers.

Alita's Bald Hill mine is located about 75 kilometres from Galaxy’s Mt Cattlin mine.