1MC - Morella Corporation

Receivers have been appointed at listed lithium play Altura Mining, throwing its $150 million recapitalisation plans into doubt. The company filed a notice with the corporate regulator on Monday revealing that KordaMentha had been appointed as its receiver, just days before it was slated to launch the heavily discounted recap equity raising.

Click to expand...

Fund manager sources told this column that prior to entering receivership Altura was struggling to get support for the deal, and the terms put to potential investors on the recap proposal weren't favourable enough.
The company was attempting to raise equity to reduce its hefty debt load from north of $200 million to about $30 million and shore up its balance sheet to ride out a period of low lithium prices.
It is understood the receivers were appointed by Altura's loan note holders which include sharp-nosed fund managers Castlelake, CarVal, Nomura and Clearwater Capital.

Click to expand...

AFR

Now, where and why have I heard Clearwater before... and why did it stick in my memory...?

frugal.rock said:

Now, where and why have I heard Clearwater before... and why did it stick in my memory...?

Click to expand...

Note holders. It's almost that we don't need to know more!!

Hi Dona and Frugal,

It would appear the Clearwater Website infers a curtain of separatism.

I can only presume this is not good omen for a mere small shareholder.

All the best

bux

bux2000 said:

Hi Dona and Frugal,

It would appear the Clearwater Website infers a curtain of separatism.

I can only presume this is not good omen for a mere small shareholder.

Click to expand...

I had a look at Clearwater today. Nothing screamed activist and in fact little said 'fund manager with a plan'.

So it left me mystified. Don't HOLD

bux2000 said:

AJM was looking OK for me, held since April.
Time will tell I guess

Click to expand...

Am thankful not to be a holder.
Have personally gone off lithium plays. "a period of low lithium prices"... IMO is set to continue and get worse as late starts actually start.
Oversupply.
I think Tesla are calling for more nickel in so called "lithium" batteries. Would have to think they are at the cutting edge for future requirements.

Best wishes bux2000, I hope you see some of your money again.

Thank you very much for your replies,

The learning process goes on.
Although tempting species are fraught with danger particularly in these uncertain times.

Thanks again for your time

bux

AJM is certainly a good reminder to keep your downside exposure (risk) within comfortable limits when trading in the spec sector (low market cap, low daily value traded, unprofitable companies). This is something that I'm aware of since starting to trade more in the sector. It's another reason to hold more smaller sized positions rather than a few larger sized ones.

peter2 said:

AJM is certainly a good reminder to keep your downside exposure (risk) within comfortable limits when trading in the spec sector (low market cap, low daily value traded, unprofitable companies). This is something that I'm aware of since starting to trade more in the sector. It's another reason to hold more smaller sized positions rather than a few larger sized ones.

Click to expand...

That's 5k lost for me.bought via 1 system so not that easy to prevent happening.and will hang forever ...
With the coming week , might become quite relative

Thank you for your comments nice to know i am not on my own,

It is easy to become a little cocky when everything looks like it is going well ........ hindsight that wonderful thing.
I have been looking to see how I could have done better and been more diligent but I didn't see anything amiss with the chart but should have paid more attention to the fundamentals.

As I said I have learned a lesson losing hard earned always makes it real.

Thank for your time

bux



Sorry stuffed up the the chart

bux2000 said:

Thank you for your comments nice to know i am not on my own,

It is easy to become a little cocky when everything looks like it is going well ........ hindsight that wonderful thing.
I have been looking to see how I could have done better and been more diligent but I didn't see anything amiss with the chart but should have paid more attention to the fundamentals.

As I said I have learned a lesson losing hard earned always makes it real.

Thank for your time

bux

View attachment 114088

Sorry stuffed up the the chart

Click to expand...

have to say that looking at the chart, nothing really suspicious even after the facts..
and if we want to trade profitable companies, most US tech would still be off the portfolio even Tesla.if trading was easy...

Now changed status yesterday
If we could at least sell shares for 0 and have it drlisted...

Anyone got any thoughts about a new CEO being appointed and new board assembled for AJM.

Thanks

bux

When it appears too good to be true...... it generally is

bux

bux2000 said:

When it appears too good to be true...... it generally is

bux

Click to expand...

Would be keen to have it relisted or delisted asap.ideally before eofy

Well perhaps generally was the right word ........ I am no expert but it might appear to have been what could only be described as a hostile Corporate Raid stripping out the major asset and leaving the Shareholders out of pocket and Management to rebuild from the bones. PLS being the major beneficiary. IMHO





And today

ASX ANNOUNCEMENT | 19 April 2021 LETTER TO SHAREHOLDERS Dear Shareholder, As you may now be aware Altura Mining Limited (ASX:AJM) (“Altura” or “the Company”) is no longer under Receivership or external Administration and control of the Company has been returned to the Board of Directors. Your Directors are now again free to communicate directly with shareholders. It has been a very difficult time for all since the events of 26 October 2020 that were initiated by the former Senior Secured Loan Note Holders (“Note Holders”) of Altura. Their actions resulted in the initiation of the Receivership and Administration process. A brief outline of the events is below. Altura was advised on the 26 October 2020 that its Note Holders had appointed Richard Tucker and John Bumbak of Korda Mentha as Receivers and Managers of the Company and had also appointed Cor Cordis as Administrators. The Board of Altura considered this an extremely disappointing outcome and a shortsighted move by the Loan Note Holders. Positive progress had been made in the weeks leading up to the 26 October 2020 towards a recapitalisation that would have resulted in a significant paydown of the existing debt and exposure to potential upside for both the Note Holders and equity shareholders. Under the recapitalisation proposal, the Note Holders would not have had any part of the monies owing to them compromised. The Note Holders, who had previously been supportive and had provided a debt standstill agreement until 31 October 2020, had agreed in principle to the recapitalisation plan. Altura’s management team and Board of Directors had no reason to consider any other course of action other than the recapitalisation process that had been in development for some months. The Note Holders removed their support late on Sunday, 25 October 2020, without any explanation or notice to the Company. Indeed, draft documentation to affect the recapitalisation process was largely, if not fully, agreed between the Company and the Note Holders as of Sunday, 25 October 2020. The recapitalisation plan was underpinned by a proposed substantial equity raising, supported by an existing offtake partner, a major player in the international lithium market. Furthermore, the raising was to be fully underwritten by a credible and well-known participant in the Australian equity market on normal industry terms. The Note Holders were to receive repayment of a significant portion of debt and attractive terms to convert a small portion of debt to equity. There was also a high likelihood that any remaining debt would have been repaid earlier than the August 2023 maturity date. The Board and all its key advisers were confident that the proposed recapitalisation plan would have resulted in a satisfactory outcome for all stakeholders. The Board was shocked and disappointed by the behaviour of the Note Holders and their treatment of the Company, its staff and shareholders. Since the initiation of the Receivership process the Directors of Altura have been actively working on a course of action that would result in returning the Company to the shareholders. This process has involved the Directors funding a proposal to the creditors of Altura Mining Limited (as at 26 October 2020) whereby they would be paid up to 100% of their outstanding debts. The Board’s proposed Deed of Company Altura Mining Limited – ASX Announcement –19 April 2021 Page 2 of 2 Arrangement (DOCA) for Altura Mining Limited was accepted on 5 March 2020. The actions of the Board resulted in the return of control of the company to the directors and the provision of sufficient funding to recommence corporate operations. The immediate focus is working with the ASX to have the Company’s suspension lifted and its shares requoted on the ASX and able to be traded. The alternative to the Board’s DOCA was most likely the liquidation of Altura with very little or no value to shareholders. In order to allow any submission to the ASX for re-quotation there remains significant corporate work including release of 30 June 2020 Annual and 31 December 2020 Half Year Accounts, 30 June 2020 Annual Report, Quarterly Activities and Cashflow Reports and holding an Annual General Meeting. The task to complete and issue these retrospective compliance requirements has already commenced. We are fortunate to retain the support of some key Altura team members even after their employment was terminated by the Receivers. As announced last week we have appointed Alex Cheeseman as the new Chief Executive Officer of Altura and expect to confirm further key appointments in the very near future. Like any progressive company it is vital to have continuity of role custodians with an aligned view of what is required in order to deliver value to shareholders. Our team have commenced evaluation of various project options and are formulating our plan to move forward in the rebuilding of the Company. The Company is reviewing pre-existing project opportunities both in Australia and Internationally and retaining a focus on the battery materials sector. During our time as a key supplier of battery materials from 2018 - 2020 we have developed strong relationships with significant global industry participants throughout the entire supply chain, many of which have reinforced their support for Altura in rebuilding the Company. Your Board understands the disappointment felt by shareholders at the actions taken by the former debt holders which resulted in the loss of our key lithium asset. As shareholders ourselves we were all personally affected. We will however look forward and focus on recovering value for shareholders and sincerely hope you are all able to remain with us and support in the re-birth of what we hope will again become a great Australian company. This announcement has been authorised for release by the Board of Altura Mining Limited.

All the best

bux

The post above indicated that I was a bit grumpy at the time


But I was wondering what happens in this case. It appears the Company still has assets and the previous directors make announcements.... a bit...... but what are the realistic chances of this thing ever flying again.

Thanks

bux

Sorry it is me that should get with the program

On December 20th, 2021, Altura Mining Limited (AJM) changed its name and ASX code to Morella Corporation Limited (1MC).

I have had a bit of a history with (AJM) now 1MC as you can see above.

I am not sure how it all went down when PLS acquired some of the AJM assets, which were about to start producing but that is history as they say.

It appears to be the same guys running this Company and I am sure they have learnt a thing or two on their journey so I for one am prepared to give them another chance.

bux