Rescue, Restructure, Reward: the $2.2m deal that paid creditors in full

Faced with stalled funding and mounting liabilities, ASX-listed ChemX and its subsidiary Hipura Pty Ltd were heading for collapse. However, thanks to a strategic campaign led by WA Insolvency Solutions (WAIS), Jirsch Sutherland’s WA division, a competitive bidding process not only preserved the value of a world-class High Purity Alumina project, but it also delivered full repayment to trade creditors and a substantial return to the parent company.

Background: world-class facility, no capital to finish

Hipura Pty Ltd was on the verge of commercialising a pilot-scale High Purity Alumina (HPA) facility in O’Connor, Perth. Designed to produce 24 tonnes per annum of 99.99 per cent pure alumina, the project had serious potential in global tech and energy markets. It was backed by five granted patents across key jurisdictions – including Australia, New Zealand, Africa, Japan and Eurasia – and trademark protection in markets in Australia, Canada, the US, China, South Korea and Canada.

However, despite strong technical credentials, Hipura’s parent company, ASX-listed ChemX Materials Limited, was unable to raise the capital needed to complete the commercial rollout or meet its liabilities. With the company facing increasing pressure from creditors, WAIS’s Jimmy Trpcevski and Cliff Rocke were approached for restructuring advice and were subsequently appointed as Voluntary Administrators to both Hipura and ChemX.

“The technology and IP held clear value, but the challenge was the capital gap. We needed a solution that didn’t just stabilise the situation but maximised recovery for stakeholders,” explains Cliff Rocke, WAIS Partner.

Solution: creating competitive tension to drive offers

Recognising the significant commercial and intellectual property value of the HPA project, the WAIS team launched an Expressions of Interest (EOI) campaign. It generated a strong response – around 50 EOIs were received, leading to nine formal offers, including four Deed of Company Arrangement (DOCA) proposals.

The Administrators recommended and creditors approved to extend the convening period to allow interested parties time to conduct due diligence. This step proved crucial in unlocking the best possible outcome.

“Three of the DOCA proposals were remarkably similar, and were all from credible parties,” explains Rocke. “That’s when we leaned into the idea of competitive tension. We made it clear in our report to creditors that we expected stronger offers to emerge.”

The strategy worked. Ahead of the creditors’ meeting, all three DOCA parties lifted their bids. In response, the meeting was adjourned to allow final offers to be submitted – ensuring every party had the opportunity to put forward their best deal.

“You only need two interested parties to create competition – and that’s exactly what happened. The process was run transparently and professionally, which gave confidence to all sides,” says Jimmy Trpcevski, WAIS Managing Partner.

Result: offer doubled, creditors paid in full

“The outcome was exceptional,” says Rocke. “Initial restructuring offers stood at $1.15 million, but after competitive tension and final negotiations, the final accepted offer came in at $2.2 million – nearly double the original amount.”

The result delivered:

• 100 per cent repayment to trade creditors
• A significant return to ChemX Materials Limited
• A preserved pathway for commercialising a high-value HPA facility

“To go from financial distress to a fully funded outcome that pays creditors in full – that’s rare. It took a collaborative effort, backed by strategic thinking and fast execution,” explains Trpcevski. “We had valuable input from ChemX’s CEO and directors, WAIS staff Mariana Pereira and Sarah Marsegaglia, and our legal advisors Bennett Law and Commercial – all of whom played a key role in the outcome.

“Internally, the contribution from our WAIS team was instrumental. Behind every headline result is a dedicated group of professionals who work tirelessly behind the scenes. The expertise, attention to detail, and teamwork shown throughout this process made all the difference. This outcome is a testament to what can be achieved when sharp minds come together with a common goal.”

Adds Rocke: “This case is a clear demonstration of how insolvency – when handled strategically – can deliver not just survival, but genuine value creation.”