SINGAPORE - Catalist-listed lithium miner Alita Resources suspended trading of its shares on Tuesday morning (Sept 3), days after administrators and receivers were appointed in relation to its default on a secured A$40 million (S$37.4 million) loan.
In a bourse filing on Tuesday, the company said it is "unable to reasonably assess its financial position as it is currently placed under administration". Accordingly, trading in its shares will remain suspended under Catalist rules while the administration continues, said the company.
Alita Resources appointed KordaMentha as its voluntary administrators on Aug 28, according to its announcement on Friday.
Galaxy Resources, as lender of the A$40 million loan, then gave Alita Resources a notice of default on Aug 29 as a result of this appointment. Following the event of default, Galaxy declared that all moneys owing under the loan, including interest, are immediately due and payable.
Galaxy also appointed KPMG as receivers and managers on Aug 29.
The KPMG receivers said on Friday that they are completing an urgent assessment of Alita Resources' financial position, but "with the intention of transitioning operations to care and maintenance shortly".
Alita Resources applied to the Singapore Exchange (SGX) on Aug 29 seeking extensions of time to announce its financial results for fiscal 2019 by Nov 1, and to issue its annual report by Nov 29. It also requested for a two-month extension to convene its FY2019 annual general meeting as well as a one-month extension to issue its sustainability report, both by Jan 3 next year.
The company and its secured lenders had previously extended the standstill period for the loan several times, to allow more time for discussions on refinancing options and recapitalisation proposals.
The latest extension of the standstill by the consortium of lenders, led by Tribeca Investment Partners, was until Aug 29.
Alita Resources shares last traded at 7.8 cents on Aug 8.