Gerard Kennedy has been discounted in this race for awhile, including by yours truly. But he has one clear way to win, and it is based on the assumption that Ignatieff's support collapses. Many of Ignatieff's Ontario delegates, for example former Ontario Premier David Peterson, are known to be strongly anti-Rae. Kennedy represents an alternative for them who would be attractive if the focus is simply on beating Rae.
It does seem difficult to believe that the Liberal Party of Canada would elect someone with suspect French skills, but the emotions of the convention floor can override anything.