Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : ARIMETCO INT'L (ARX ON TSE) -- Ignore unavailable to you. Want to Upgrade?

To: Don B who wrote (67)	4/1/1998 2:15:00 PM
From: James Hamilton	Read Replies (2) \| Respond to of 80

Gentlemen: Thanks for your responses. I have since received a further update. The restructuring plan will allow the company to sell off a number of its properties (primarily the non-producing properties, many of which were recently acquired). The bankruptcy court and the shareholders must approve the restructuring plan, otherwise the court will force ARX to hold a fire-sale of all assets to pay off creditors. If this fire-sale takes place, ARX will have to unload the properties at whatever price they can get and not be able to shop around for fair value. The funds from such a sale will cover the money owing to secured creditors (maybe), and us shareholders are left with nothing. On the other hand, if the plan is approved, ARX believes that fair market value of the properties it plans to sell will allow them to pay off the secured creditors, and remain in operation. After the restructuring, ARX will not be eligible for trading on the TSE. In order to reapply for a TSE listing the company would need to comply with requirements for assets base, number of shares, number of shareholders etc. It is unlikely that any of these criteria will be met (the company will probably do some sort of share consolidation in the process). Therefore, don't plan on finding a market for your ARX shares any time soon. My guess is that we will probably be able to trade ARX on the Alberta or Vancouver exchange (maybe OTC) sometime this year (although you will probably only own about 1/10th of the shares that you previously did. Look on the bright side.... you could've invested your money in BRE-X instead. James.