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SOURCE Automotive Resource Network Holdings, Inc.
NEW YORK, March 14, 2013 /PRNewswire/ -- (Pinksheets: ARNH) The Automotive Resource Network Holdings Inc.'s CEO, Kathleen Roberton, is pleased to announce that a memorandum of understanding has now been reached with the majority of the non-affiliate debt holders in the Company. The Restructuring and Reorganization of the majority of the debt is now complete. The Automotive Resource Network Holdings Inc. will be retiring the good majority of its debt, held by non-affiliates, to Convertible Preferred E Series Stock. These securities will be the backbone of the S1 registration that ARNH will be aggressively pursuing. Any outstanding non affiliate debt that has not signed off to this agreement, will have to be part of a registration statement with the SEC. Moving forward, ARNH will not issue any further resolutions outside of its existing contractual obligations, to allow its bond holders to convert debt into equity, without a registration statement.
CEO Kathleen Roberton states, "We are following our Three Step Plan. Our first objective was to remove affiliate and non-affiliate debt from the balance sheet. The majority of the affiliate debt was retired for the Convertible Preferred Series E Class shares, and now we have commitments from the majority of the bond holders to retire the principal portion of their debt for the same class of securities. Our agenda, all along, was to bring our debt to equity ratio below 50%, without destroying investor confidence, and we are going to be successful, despite the loss of considerable shareholder value. The upside here is that the Company will no longer sanction any further issuance resolutions for the conversion of debt that is not part of a registration statement. Any remaining non affiliate debt that has not been already issued or converted will be part of the composite registration statement that ARNH will be filing with the SEC."
Kathleen Roberton, further states, "We are committed to filing audited financial statements through a PCAOB auditing firm, and will be going through a Registration Statement with the SEC within this calendar year. We cannot stay on the pink sheets and hope to build value and transparency for our stock holders without being a fully reporting company. We have learned that shareholder value cannot be strengthened when there are repetitive conversions done in the same notes. We have now taken steps to eliminate the repetitive convertibility of aged non affiliate debt, and will forge on with our regulatory requirement to become fully reporting as we look to enhance the value on our balance sheet. There is much more to come in this regard as we look to buy our value, using the Preferred shares as our currency. We will be able to answer shareholder inquiries, more thoroughly, once we have engaged a shareholder communications team to speak for ARNH."
About The Automotive Resource Network Holdings Inc.:
The Automotive Resource Network Holdings, Inc. specializes in offering a month to month vehicle service contracts to cover mechanical breakdown of cars. The industry boasts over 275 Billion dollars in sales each year. The month to month offers the lowest possible monthly payment and is in a position to dominate the market through different vertical markets.
ARNH cautions that the statements made in this press release constitute forward-looking statements, and not guarantees of future performance and actual results or developments may differ materially from the projections in the forward-looking statements. Forward-looking statements are based on the estimates and opinions of management at the time the statements are made.
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