2242749 Ont Ltd. AIIFF

RE:RE:RE:RE:RE:How to over come this (Limited)

[woolwich]

Some might argue that it would take a seeing and hearing impaired 'white knight' to step up for ARF.  Two or three years ago, when the troubles were already highly visible would have been the time to look for a buyer or for shareholders to bring about major change by collectively voting out the directors.  At that stage the punishing interest and fee charges from Brookfield were somewhat less onerous and some corporate reputation may have remained salvageable.

Without an inside look at the management accounts it is hard to know what value, if any, ARF has - particularly interms of what has not been fully mortgaged.  All can see that despite doing over $400 million in revenue annually there no return and each year more borrowings are required to fund an essentially unchanged level of business.  The worth of any contracts is unknown and now, without Brookfield, ARF is unable to provide performance bonding.  The company's most important assets are likely highly mobile and motivated to seek change - they go home every night.  Based on performance this category of assets would not include the directors or senior executives.

One of the most puzzling elements in this sorry saga is the scant interest of most shareholders.  The current Board was elected by only 25% of the shares in issue and while trade over the last 20 or so trading days tops 6 million shares, many of these same shares having changed hands several or more times.  It all points to how little of the total issued capital is actually involved or interested.  Even BMO/Nesbitt, which will be or has been tasked with finding potential buyers, continues to have clients who appear to be making and covering intra-day shorting activity.

Many would doubt that there is a way  to save ARF, preserve the listing and satisfy all creditors and lenders.  In the meantime the resources, such as they are, are neither preserving or building the enterprise.