Aerobox Share Discussion Threads

[tanners3] 07/1/2007 15:34

I myself have done the work to bring over 20 companies out of chapter 11.

Never thought i would be owning shares in one though..
I do not know who is dealing with their ch11 but i would say all is not lost,albeit,most.

[smallchange] 07/1/2007 12:20

We are awaiting news as to who buys the rights to the Aerobox petent on the material and what they will do with those patents. Aerobox is finished and will never return, Shareholders have lost their investment.

[davehome] 07/1/2007 11:56

Am i right in saying that from the posts above there is a very minute chance of this still being alive. My understanding is that they went in to liquidation. I have never heard of anyone coming back out of liquidation. Whats the real story, someone ?

[smallchange] 02/1/2007 04:20

napoleon,

the problem was they invested the money into the wrong machinery and couldnt make the boxes fast enough. They had the spec correct but just couldnt produce them. There may be a faint glimmer but if it does manage to survive it will be a long time for the orders to return.
I sold out at a nice profit at the start, and had reinvested and sold out at a minimal loss..in profit all together on ARX but its a very sad tale for investors who invested for all the right reasons but couldnt see the fact that production never met got on track to fill orders.

[napoleon 14th] 31/12/2006 17:55

I gather the main problem is making their ULDs to the spec. they sell them on?

If so, the financial side is a result, not the cause.
Otherwise, it would be possible to ditch the US side & get a deal with the chinese to restart the whole job. As long as their technical probs. aren't solved, these are no-hopers, which is why I sold most of mine at a whopping loss.

Dead money anyway....

Pity, the idea was OK!

[pedigree_scum] 22/12/2006 07:59

Tom2468 always said news was due! Fair play to the fella....

[mad mike] 21/12/2006 10:21

ARX may not be well, but it is alive:-
- RNS released (just an FSA required disclosure of number of shares in issue)


So they must have some money left, even it is just to pay for the MD, PR, Broker & RNSs - LOL!!

[donaferentes] 18/12/2006 13:47

mad mike - thanks for the correction.

seems like Brookspey may end up being our heavily majority partners on the plc, if they ever come out of Ch11.

[distill] 18/12/2006 12:31

cheers mad mike

[mad mike] 18/12/2006 12:26

FYI, we were told ARX's operating subsidiary, AeroBox (ACS), was going to file for Chapter 11 during the week begining 18th September 2006.

donaferentes, I'm not sure you are right about who owns the secured loan. From the original RNS (2/5/06) the secured loan was not made to ARX, the UK (previously) listed company, but made to its US subsidiaries. Also although the loan was "made available based on certain assets of the Companies", the RNS said that "The Companies are not bound by any financial covenants".


=======================================
Extract from RNS 2/5/06

Aerobox announces that its US subsidiaries Brookspey Investments Inc ("Brookspey"), AeroBox Composite Structures LLC ("ACS"), UniversalCore LLC ("UniversalCore") and OvoCorp LLC ("OvoCorp" and, together with Brookspey, ACS and UniversalCore, the "Companies") have entered into a US$3 million three year secured revolving loan agreement with Laurus Master Fund, Ltd. ("Laurus"). Laurus is a Cayman Islands company that provides financing to small cap growth companies. Laurus will manage the facility through Laurus Capital Management, LLC, a Delaware limited liability company, which is based in New York.

The funds will assist the Companies in funding their working capital needs.

The US$3 million facility will be made available based on certain assets of the
Companies. The Companies are not bound by any financial covenants and Laurus is charging interest on any outstanding amount at a rate of 2% per annum above the Wall Street Journal prime rate. Aerobox is required to maintain a minimum net worth of an acceptable level based on it's reported past financial results. The Companies have the right to re-pay the loan at any time on 30 days written notice, subject to early termination fees.
=======================================

[donaferentes] 18/12/2006 09:35

mad mike - I think I am right that we need to distinguish between ARX plc, vehicle for our capital currently suspended from AIM, and ARX Inc(?)a US operating subsidiary now protected under Chapter 11.

I am sure ARX plc, who arranged the loan with the hedge fund, cannot meet its covenants to draw down the loan. I imagine ARX plc is working hard behind the scenes to sell, relocate and/or recapitalise the operating subsidiary to emerge from its CH11 pupa as a beautiful(if voracious)imago. No knowing which direction they are heading, or whether iit simply allowed the directors another 6 months of salary whilst they "endeavoured" to save the business.

Anyone know how long Ch11 is allowed to run before you have to call it a day? When did we file - can't be bothered to look it up?

[mad mike] 18/12/2006 09:27

distill, you are correct that ARX could still be trading because it is protected from creditors being in Chapter 11. However, it does need cash for working capital to be able to trade. What I don't know is whether it is allowed to touch any of the cash it borrowed from the hedge fund. I'm just not such if Chapter 11 means it can do so.

Regarding a sale of the company, I recall the first call on any money paid for the company is to the hedge fund to pay back the debt. However, any company sale has to be agreed by the shareholders. So the hedge fund are likely to have to agree that the shareholders get sometime, otherwise the shareholders will vote against a sale.

This situation happens all the time e.g. My Travel, Telewest, Marconi etc. It is not unusual for new shares to be issued that result in the hedge fund owning between 85% to 98% of the company and the shareholders getting the rest. However, once the shares are re-traded, a realistic Market Cap then occurs for the company, taking account of no debt any longer, and the prospect of going bust being way over any horizon. I suspect the new share price would not be far off the price the old shares were trading as we approached Chapter 11, because that is what the knowledgeable professional traders/investors would have been valuing the company at. So the price might be anywhere between 1p-5p, depending upon your view of when the professionals knew ARX would have to go into Chapter 11.

But for any of the above to happen, ARX needs to still be a going concern i.e. still trading. If it isn't a going concern, there isn't anything to sell other than the company as a tax loss.

[distill] 18/12/2006 00:48

surly if it's in chap 11 it's stil trading (also if it makes it through we'll still have our shares)also if it is bought would we not automatically have shares of value in that company!!

[mad mike] 16/12/2006 15:34

You need working capital to fulfil orders. Does ARX have any?

[sack of spuds] 16/12/2006 13:34

i presume despite our shareholder problems.... arx is still trading and fullfilling exsisting orders

[mad mike] 16/12/2006 00:25

Every loss making company has a value even if it has technically gone bust (which I don't think has formally happened to ARX yet). The fact that ARX is sitting on several years of losses, means a profitable company one day will buy ARX just to use the tax loss (& set it against their profits). Mind you, you never know when that might be, or whether shareholders will get anything of value.

I suspect that the lack of a price quote today, 15/12/06, (& thus zero value in a V3 portfolio) is just because exactly 3 months have past since dealing in ARX shares were suspended (15/9/06).

[scaleyman] 15/12/2006 22:47

Segilla, many thanks for your reply 7159, pretty much spells it out! :(

Any others with a view please?

[sack of spuds] 15/12/2006 11:08

berable
i agree. take it on the chin
i just get annoyed that the directors loose no or little cash. they still have ways and means of getting money out the business which we dont.cest la vie.
i only have a very small amount left on aim i shant invest in aim ever again (which has been my polcy since 2002. its better to play online poker.lol

[scaleyman] 12/12/2006 14:56

ADVFN portfolio actually showing 100% loss today rather than the price at suspension.

Never been here before (thankfully) do you receive a written document/communication advising of a total loss for tax purposes etc?

[scaleyman] 29/11/2006 11:45

Strong chin required here then, £15k adrift!!!! mea culpa, mea culpa, mea maxima culpa.

[weegeordie] 29/11/2006 11:07

sos - certainly do - looks like they are trying to keep it for themselves.