Post by
Thethruthhurts on Jun 12, 2014 9:45am
Can't wait to hear how this move is justified on the 17th
As Armtec stuggles like the proverbial drowning man -- desparate to catch some precious breath required to survive -- they offer this announcment for more "strategic borrowing". Nothing about major wins in sales or marketing; only that we need to borrow more money and hope that the ground thaws in western canada and people stop cutting their prices and we get to deliver last years orders for sound barrier. Stunning!
After the press release appeared last night, a colleague of mine fired off an email that best sums up the reality of how pathetic and desparate this company is.
Read the press release below. Armtec is yet again kicking the can down the road and hoping to brighter days ahead. Brookfield continues to be one of the most impressive predatory lenders I’ve ever seen.In order for Armtec to access an emergency $7.5 mm lifeline, it will cost them $10 mm to do so, + interest. The Brookfield IRR on the Armtec loan must be through the roof. Instead of Armtec doing what is necessary and restructuring to delever by selling half of their businesses, they continue to ask for more rope with which they will hang themselves with, all with the hope that tomorrow will be a brighter day than today. What if the second half of the year is not stronger per their projections? I can't imagine they have much runway left.
As I have pointed out on several occaisions this company won't recover hoping for a better market. Their competitiors are thriving and have overcome the excuses that Armtec keeps clinging too. This company has no idea what it is anymore and this latest borrowing play is a clear demonstration that the problem stems from the unqualified leadership that runs the place. Their products are all low tec and are desparate for capital injection to modernize production and quality. Labour rates and production costs need to be cut drastically but without a capital improvement plan they will continue to reflect ratio's that were barely acceptable in the 1980's.
Someone with a plan needs to show up and clean this mess up. It won't be a knight on a white horse. More like someone driving a 'honey wagon' in a hazmat suit that cleans up toxic waste and other foul effluents.
#armtec #armtec plan #armtec investor relations #markanderson #brookfield #
Comment by
williamernest on Jun 12, 2014 9:48am
This post has been removed in accordance with Community Policy
Comment by
RustyNail on Jun 18, 2014 7:41pm
Was there anything from the meeting that has relevance? Any indepth explanations of the Brookfield deal or pending good news, orders, exciting new developments? Just looking for something positive.