Lawry1dog & JadelThanks for all the comments. There are some...

Lawry1dog & Jadel

Thanks for all the comments.

There are some issues for the directors as you have correctly pointed out;

1. Directors must now sign an ASIC declaration that “the company will be able to pay its debts as and when they fall due and payable”. Directors are now certainly in ASIC’s line of fire.

2. The “continued support of creditors” is interesting and the directors have obviously made arrangements with the creditors to line up with the realisation of assets cash flow.

3. So as indicated previously ARL will continue to realise the assets to provide sufficient operating funds until all the assets are sold, the directors bonuses are paid and then wind up the company and pay out the shareholders with a reduced / nil share value.

In effect all the company is doing is trading at a loss whilst there are assets still to be sold.

If the burn rate $ accumulative is more than the asset realisation $ accumulation than the directors would need to be very much on the ball so ARL does not become insolvent and place themselves in ASIC’s spotlight.

From the performance to date this may happen, so watch the worm turn when closer.

4. The upcoming ASIC WCL court action may put a bigger spanner in the works.

As the ARL AGM is now listed for 29 November and that maybe a good time to ask the prickly questions.

So I suppose it is only a matter of terminology broke, bust, illiquid and so on, the outcome is terrible for PIF