Equinaire Seeks Foreclosure on Celsius’ 40% Makilala Interest as Court Halts Auction

Legal Freeze Blocks Equinaire’s Foreclosure Attempt

Celsius Resources Limited (ASX:CLA, AIM:CLA) finds itself entrenched in a high-stakes dispute over its 40% stake in Makilala Mining Company Inc. (MMCI). Equinaire Holdings Limited, having acquired loan rights from Maharlika Investment Corporation, claims Celsius triggered an Event of Default under the Omnibus Loan and Security Agreement (OLSA). Equinaire has sought to enforce its security by initiating foreclosure and a public auction of Celsius’ interest.

However, the Regional Trial Court of Makati City has intervened, granting a Temporary Order of Protection (TOP) that halts any foreclosure or auction proceedings. This judicial reprieve preserves Celsius’ ownership for now but is set to expire on 25 August 2026.

Celsius Rejects Default Claims and Prepares Arbitration

The company firmly rejects the assertion that it has defaulted under the OLSA, disputing both the validity of the alleged Event of Default and Equinaire’s authority to enforce foreclosure. Celsius plans to initiate arbitration as the next step to protect its interests, leveraging the dispute resolution mechanisms embedded in the loan agreement.

Equinaire, meanwhile, has applied to the same court to lift the TOP, seeking to resume the auction process. Celsius has actively opposed this move, submitting legal arguments to maintain the freeze. The court has yet to decide, ordering both parties to maintain the status quo until the motion to lift the TOP is resolved.

Complex Ownership and Loan Assignment Background

This dispute follows a contentious assignment of the OLSA from Maharlika Investment Corporation, a Philippine sovereign fund, to Equinaire, a subsidiary of India’s Kiri Industries Limited. Celsius has previously challenged Kiri’s involvement, including attempts to block offtake agreements and governance shifts at MMCI, highlighting a protracted battle over control and financing of the Philippine copper-gold project.

The ongoing legal wrangling adds another layer of uncertainty to Celsius’ operations at Makilala Mining, where ownership and financing arrangements remain unsettled. The company’s intention to pursue arbitration suggests a drawn-out conflict, with the potential to impact project development timelines and investor confidence.

Court Decision on TOP Will Set Next Phase

The Regional Trial Court’s forthcoming decision on whether to lift the Temporary Order of Protection will be pivotal. If lifted, Equinaire could proceed with foreclosure and auction, potentially diluting Celsius’ stake. If maintained, Celsius gains breathing room to pursue arbitration and defend its position.

Investors should monitor this legal contest closely, as its resolution will shape the future ownership and control of a key asset in Celsius’ portfolio.