Thank you to yourself
@Sjlasx &
@GARETH78 for your well thought through as well as clearly explained posts, they were a pleasure to read and very informative.
It is sad what has occured here, but what is worse is reading posts that are making out like all is well, we might owe $100 million but we will sort that out under voluntary administration and be back on track in no time.
Someone here mentioned that all up the company would require $150 million to get back on track. Perhaps it would be more as they would also need to be able to cover while they remain shut down.
Don't forget also that the market cap closed at $121 million. - Plausible still?
It's also interesting that, is it Korda Mentha? have declared that all assets belonging to Alita as being worth ~$28 million. That is significantly less than the debt owed to the secured creditor.
I am little surprised that some holders are thinking of being so heavily diluted, but then when it looks like all might be lost it makes sense, but basically a loan of in excess of $150 million would place Alita in a similar situation as AJM yet they are shipping, and frantically mind you to keep their head above water.
Also, with regard to some posters stating that there has been a white knight offer it's worth referring to the documentation from the Supreme Court of Western Australia
The voluntary administrators have investigated potential options to recapitalise and restructure the Companies through a deed of company
arrangement (DOCA). A number of possible DOCA proponents have been identified. However, negotiations are at a preliminary stage. Mr Bumbak informs the court that the extension of time sought in this application is intended, among other things, to provide the voluntary administrators with additional time to carefully consider the DOCA proposals received and potentially to finalise a DOCA proposal.
8 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.Further information worth considering.
In support of the extension application, Mr Bumbak deposes as follows:
I consider that the extension application is in the interests of creditors of
the Companies and is necessary to:
(a) provide adequate time for the Administrators to undertake and conclude negotiations with potential DOCA proponents, in particular with Galaxy;
(b) avoid the value destruction which I expect to be inherent in the immediate liquidation of the Companies; andThat doesn't sound like a defeated Galaxy as some have purported. Sounds like head of the table with waiter service and lobster.
Also, in relation to comments that Galaxy have wanted to rush the process.
As I understand it Galaxy had made an offer to Mark Calderwood that would have avoided the current circumstance and provided a week to think about it and come back and discuss to which MC didn't want to be involved anymore and placed the company into voluntary administration.
From what I understand the offer might have been a scrip for scrip similar to one I had previously mentioned here and was scoffed at.
I tried
In the creditors meeting Richard Tucker of Korda Mentha pretty much laid this out to be a cut and dry case and that they suggested that it was pointless forming the committees...
View attachment 1764086however some of the attendees decided that it was required so Galaxy went along with it.
Also, further in the Supreme Court documents it states with regard to the extension request.
Galaxy, the secured creditor, has confirmed
that it supports an application for the extension of the convening period for up to three months. So too the receivers and managers support the
extension. It's pretty obvious that Galaxy have been willing to go along with whatever has been asked of them and easy going a company owed over $40 million plus down on their initial investment.
Irony... Not wanting a scrip for scrip and then wanting a bailout with well in excess of +100% dilution.