Here is what to expect.
Firstly operations as usual.
1.Independent forensic accounts will now examine the finances.
2.Given the huge debt levels liquidation could proceed.Parts of the businesses will be sold to extinguish debts.
3.DOCA will commence once businesses have been sold.This is where the company is recapitalised and placed in a position for possible reinstatement to official quotation on ASX if new owners plan to relist the new identity.
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Once the liquidation is complete creditors will have received possibly 70 cents on the dollar, sadly shareholders get nothing as they are last on the pecking order.
Sad day for shareholders but not so bad for AU's steel industry as this removes the junk from the company and then new cash comes in.
The above scenario is generally what occurs in these situations.
Interestingly the SA labor govt wanted taxpayers to bail out but sanity prevailed as the Fed govt wanted the company to restructure under a different structure.rightly so as the existing structure if ARI was failing and bleeding under a mountain of debt.
ARI Price at posting:
2.2¢ Sentiment: None Disclosure: Not Held
