(Reuters) - Australian lithium miner Alita Resources Ltd <A40.AX> on Thursday appointed administrators to restructure the company, following talks with lenders and key stakeholders.
The cash strapped miner, which had been negotiating terms for a restructure proposal with various parties along with Galaxy Resources <GXY.AX>, its new secured lender, said it was unable to secure commitments it was seeking.
Earlier this week, Galaxy Resources, Alita's largest shareholder, bought $28.8 million worth of debt in the company.
Market conditions for lithium, a key ingredient in the battery industry, have worsened due to lower demand from Chinese customers after a change in the country's electric vehicle subsidies and global trade tensions.
Alita, which is also listed in Singapore, is under pressure as its key Chinese customer's biggest backer is facing financial troubles, forcing the company to look into new supply deals.
Alita had also taken a price cut on its shipment of lithium concentrate to a China-based chemicals maker, as it sought to offload its stockpile amid higher lithium supply.
Richard Tucker and John Bumbak of KordaMentha have been appointed as administrators, the company said.
(Reporting by Shriya Ramakrishnan in Bengaluru; editing by Richard Pullin)
