Celsius Resources said its petition for interim relief was rejected by a Philippine court, allowing Equinaire Holdings to proceed with the sale of a 40% stake in Makilala Mining Company Inc. (MMCI). The Makati Regional Trial Court ruled that Celsius failed to prove irreparable damage, noting that potential losses could be addressed through arbitration rather than court intervention.
The dispute stems from an Omnibus Loan and Security Agreement between MMCI and Equinaire, under which Equinaire alleged multiple events of default. Celsius has contested the allegations, arguing that no default occurred and disputing Equinaire's right to enforce the agreement. The court's decision does not address the merits of the default claim or Equinaire's enforcement rights, which remain subject to arbitration.
Equinaire deposited a PHP 201 million bond to revoke a Temporary Protection Order previously granted by the court, enabling the scheduled public auction of the 40% stake on September 8. The stake is held by Makilala Holding Limited (MHL), a wholly-owned subsidiary of Celsius. The transfer process through the Philippine Bureau of Internal Revenue and Securities and Exchange Commission typically takes 27 business days, or about six to eight weeks.
Celsius said it plans to file a Motion for Reconsideration by the end of the week and, if denied, will appeal to the Court of Appeals. The company also intends to review its Notice of Arbitration to initiate proceedings related to the dispute. Celsius Resources' shares closed at 0.004 AUD on August 31, down 20% from the prior session.
