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This has become a war of attrition. Note guys are like the honey badger and just dont care. Managment likes their salaries and everything else including saving cash for a rainy day is a non event. Hugo is sick and now everyone knows why the elections were moved up. Maduro will be the next president and nothing will change as the machine will throw enough money and welfare to get him elected as well. In the end i still see a crrstallex victory and shareholders that fell on the dilution sword to pay for it.
Some Additional Disclosures on Monitor Site...
November 23, 2012, order filing also posted.
- Extended Stay to December 18, 2012.
- Extended order to submit Compromise/Arrangement to December 14, 2012.
Monitor report gave a preview of the order.
Claims Process sub-directory also has several docs added.
GLTA
Stay Extension to Only Jan 31, 2013...
Claims officers appointed.
Company asked for extension to May 2013.
Looks like the court wants this done.
December 18, 2012 Order Link
No surprise. Note guys seem to be on ice and would rather bleed the coffers dry than make a deal now. The strategy may be to gain 90% of the remaining shares in exchange for salary money when the well is dry. Managment will help their cause by continuing to spend 1.3 million a month at a minimum. I see victory for tenor, management , note guys and Crystallex corp. I see more pain for current shareholders. Managment must be hoping for a huge GRZ win and rise in SP so the next dilution will not be a death blow. You can do the math and at some point when management needs another 15 million the cost will be about 200 million shares at 8 cents. Ugly.
Monitor Report Seven Posted, Still No Arrangement/Compromise Disclosure...
Three weeks since order deadline for Arrangement/Compromise.
Dec 18 Stay ends tomorrow. Extension to May 17, 2013 requested.
Looks like just more extend and pretend.
Tough on shareholders in US, more so on Canadian stuckholders.
GLTA
CRYFQ Claims Procedure Order Posted...
Arrangement/Compromise yet to be disclosed.
Deadline of Nov 29 came and went.
To be handled in another order.
Claims process language is typical. Court trying to get this over and done. Could get really interesting if the Chinese make a claim for their not so recent loan.
Claims Procedure Order Link...
http://documentcentre.eycan.com/eycm_library/Project%20Gem%5CEnglish%5CCourt%20Orders%5CCCAA%20Orders%5CClaims%20Procedure%20Order.pdf
Market should be nervous. As time drags out dilution is the death star for this company even if managment can hold off the note guys. Its why cash burn is so important and its not a pretty picture. There is a slim possibility of a settlement soon but more likely a small pump and dump when chavez dies. End game is managment and CRY wins, shareholders not so much if dilution is used to keep the lights on for next 3 years.
Only See The Endorsement, Order Still Not Posted...
Just the Claims Process/Procedure still being negotiated. Although reading some of the prose might be taken as being favorable to the company, the Claims Process is, what it is.
Bottom line is the Court is trying to close this out.
Slow and steady downside in SP.
Market seems to be nervous.
New order seems to keep judge on side of crystallex for now anyway. I expect more of the same as the cash bleed continues. Im not sure how this helps note guys unless they expect managment to give up lots of shares for a small loan. Hugo health appears on the ropes again. This is key if a Citic Deal is really the solution . Until then his mafia will continue to work the pit because the split is currently better than a citic deal.
Another Monitor Report, Number Six...
All about the Claims Process.
Moving forward to get 'er done.
Nothing yet on an Arrangement/Compromise.
Monitor Report five had the backup plan.
Big volume today, 3.5M+.
Might be Pinkie Hedgies changing over.
Hope this works out for commons.
GLTA
It will really only work out if management stops milking this cow for pay and benefits. Long term 12-36 months dilution will destroy and hope of a reasonable return for shareholders with current trends in play. My advice is bail on any decent rise in SP. A decent rise depends on your cost basis I suppose. I still do not expect much from mediation although note guys could have really made the situation work for them in more ways than one by rolling the debt for another 3-5 years.
One Week to Arrangement/Compromise Plan Submittal Deadline...
Less than two weeks to end of current Stay.
CRYFQ SP down since last week.
Might be negotiations leak, might be tax-loss.
Still no disclosure of Monitor/Creditors communications.
Canadian players still stuckholders.
Lots of unhappy smileys.
Hope it all works out for commons.
GLTA
Hard to say. Mms do what they want. I suspect if there is a material leak the volume will really spike. Bs stocks like this are the first ones people sell when margin calls and tax loss selling happens. It may be a simple washout for the next run to .14.
Interesting SP Action Last Few Days...
Could be tax loss selling. Could be news leakage.
Recent equipment auction seems a bit too coincidental.
GLTA
Two Weeks to Arrangement/Compromise Plan Submittal Deadline...
CRYFQ SP floating along as usual.
No appearance of a leak, either way.
Should be seeing some disclosure of Monitor/Creditors communications.
At least it was implied in recent filings. Nothing yet on Monitor site.
Canadian players still stuckholders.
But, tax-loss time coming up...
Possible unload opportunity, likely not good for SP.
Auction of equipment may have been coincidental. Too coincidental.
Who knows. Disclosure has never been good with this ticker.
Hope it all works out for commons.
GLTA
I think they wrote the value down on the remaining equipment to 1.6 million so they should at least hit that mark. Buying 70 million worth of equipment and paying 10% interest on it for 5 years gets expensive and turned into a 115 million net loss so far.
Regardless its good news and may give them a few more months of life.
Rabin to Auction Off Crystallex Mining Equipment...
Anybody got an extra few million laying around?
For every million, another month of CRYFQ survival.
Well, less auction commission.
Link, etc., below...
http://www.rabin.com/AuctionsAndEvents/AuctionOverview.aspx?AuctionID=MDEP-8ZJRSA&PublishedItemCount=0&WebReady=Y&LPhoto=N#
Gold Mill Process Equipment
$14 Million Cost, Unused Inventory
-----------------------------------------------------
All Purchased New by Crystallex, Inc.
South American Gold Mill Project
Grinding Mill & Apron Feeders
Outokumpu 5' x 8' lime slaker, model 1524
(3) Metso apron feeders, 1830mm x 7m, 7.5m, & 1525mm x 5m
Screens & Magnets
(2) Screen Systems SAG mill discharge screens, simplicity 8' x 20'
(4) Sizetec trash liner and dewatering screens, 6' x 12' and 4' x 8'
(4) Delkor trash liner and dewatering screens
Eriez magnets, and Siemens belt scales
Concentrators & Electrowinning Cells
(2) Knelson centrifugal concentrators model KC-XD48MS
(4) Summit Valley electrowinning cells
(11) Heath & Sherwood samplers
Filter Presses, Cyclones, & Columns
Dorr-Oliver/Eimco plate & frame filter presses
(2) Krebs Cyclones clusters, each with 18 cyclones
Summit Valley acid wash and elution columns
Flocculant Mixing System
Delkor flocculant mixing system, designed for 1200kg/day, screw feeder
Hayward Gordon agitators from Process Equipment Package
Rotary Kiln & Carbon Screens
Kemix carbon reactivation kiln,1600mm dia x 12,290mm L drum, 1350 kw.
(28) Kemix interstage carbon screens, model MPS1000
Furnace & Incinerator
Inductotherm induction furnace
Eco Waste Systems 2-stage solid waste incinerator
CCI Thermal Technologies elution heater (skid mounted)
Water Treatment Systems
Water treatment plant from Process Equipment Package
Seprotech sewage treatment plant from Process Equipment Package
(3) Weir fresh water pumps with dewatering & reclaim water barges
Laboratory Analyzers
Varian Canada Inc AA240 atomic absorption spectrometer
Outokumpu particle size analyzer, model 2601
Assorted Anachemia of Canada furnace & lab supplies
Pumps, Motors & Valves
(20) Weir Galigher pumps, model 8SH6-8100, 6x4x15 LRH
Assorted WEG LV & MV motors ($390,000 new cost)
GIW CIL saprolite feed pump, LSR-18x20-52.6 type C/5ME
Performance Fluid progressive cavity & floc transfer pumps
FFE Minerals-Technegate knife gate valves, 14", 24" and 30" valves
Gould firewater pump, 270m3/hr, 70m head
Miscellaneous
(10) Ingersoll Rand air compressors, 50 hp, 100 hp, 200 hp, 600 hp
Process plant & shop overhead cranes & hoists
MP Husky LV & MV cable bus ducts (for substation support installation)
Control room communications & fiber optic equipment
Northwest Technology fibrer optic backbone equipment
Lubequip truck shop lub system with GR fuel dispensing pumps
Auction
Auction will be held online with Rabin 24/7.
Lots will open for bidding Monday, December 3rd at a time TBD.
Closing Schedule
Lots will begin closing Wednesday, December 6th at a time TBD
Start Time
Auction site time zone - Monday, December 3rd, 2012, 10:00 AM
Your time zone - Monday, December 3rd, 2012, 8:59 AM
Preview
By appointment only.
Friday Light - Off & Done After Lunch...
Pretty much the same story as yesterday.
After lunch, folks too drowsy to trade CRYFQ?
Have a great weekend.
GLTA
CRYFQ Trading Today on Vacation After Lunch Hour...
About 36k volume today, after nearly half a million yesterday.
Maybe whomever wanted in/out is done, and everyone is happy.
Expecting some Monitor disclosures between now and the next deadline of November 23. Any communications between the Monitor and creditors are mandated as public disclosures. The Claims Process will determine who the other "Big Fish" are within the formed groups. Could be interesting, but likely all creditors, except the noteholders of course, are willing to take whatever they can get, just to move on with business and life.
Interesting that there have been no motion filings posted concerning the noteholders for quite a while now. Seems quite odd considering what is told by Fung's affidavits. Made out to be greedy, unreasonable and evil, which they very well may be, but no motions to speak of posted on the Monitor's site.
Guess commons can be grateful to be getting at least one side of the story.
Common ending up with a 30% stake would not surprise me. What would surprise me is if management rolls before a grz verdict. I do believe their strategy is to stall the stay until At least the hearing and I give them a 50% chance at success. I dont think tenor cares about the burn rate because they have dilution protection. Their 35% never gets cooked even if 2 billion more shares are issued.
Management will have no problem diluting until 2016 if their salaries are on the line. That would be a great plan for them imo. Bondies may get some preferred shares at some point as well that are dilution proof. Unless there is settlement soon shareholders will get cold left overs. Left in he hands of a salary loving management for too long is a one way ticket to a victory with no pay out.
I do think the issue is more about getting a piece of award than control of repayment for note guys. Priority of payments will go to debt holders first unless they exchange some debt for stock. i see them getting a stake but not in exchange for debt. They may get one seat on the board since they missed the DIP boat and had no intention of loaning 36 million on top of a bad bet.
I dont see any deals being made soon but who really knows. I do see this as a prime zone for a pump and main reason I am going to stick around more than a minute on this play. Rumors of a generous bond guy deal or VZ talks could be close.
Thinking The Negotiations Are Less About Bucks...
...and more about control of how repayment happens. Notice Tenor. For the DIP, they negotiated slots on the Board so that they have control and intimate knowledge of how their stake will be paid back. Although, am a bit surprised Tenor allows the cash burn rate, it just may be all a part of some insidious plan by Management/Tenor.
If I did not think these guys were all in cahoots, I'd think there is now a sticky situation about opening up some more Board slots so that noteholders can have some say over how their repayment is controlled. Typically and historically in CCAA, Plans have the larger creditor(s) obtain some control of the company, usually in the form of Board seats, so that they have some control and assurance of being paid whatever the Plan outlines.
If these guys are not in cahoots, would think Tenor wants no part of giving any little bit of control to noteholders, despite it being a somewhat normal occurrence in CCAA Plans. Had the noteholders won their appeal, but had been told by the court too-bad and that is the way it is, then there would be no sticky situation. Interesting.
Timeframe is unknown, but appears to show signs of being more on the fast track than previously. Burn rate has always been in afterburner mode. Thinking commons will be fortunate if they retain one-third of overall equity if a Plan happens. Tenor is probably salivating at the opportunity to get another chunk of common's equity with a "DIP2" down the road.
Any way it is sliced, commons appear to be the losers in all of this. After all, management is negotiating with the only thing they have to negotiate with - common's equity.
GLTA
The judge wants a deal. I agree. The unknown is the timeframe. I believe there will be another mediation after the grz decision if this one fails. Personally i am more concerned about the burn rate as any give away to note guys could have been offset to a point if a tight budget was followed. As it stands now i see another 15% stake gone just for some cash to last into 2014. Unfortunately i also think its wishful thinking the note guys wont pull at least a small stake of any award. Maybe they can cough up the next secondary 15 million money for that stake because its coming from someone if things continue.
E&Y Filing Update, Couple of Days Ago...
Shows...
1. Stay until Thursday, November 29,2012; and,
2. Mediation today (Oct 24) with Justice Campbell, likely also more mediation into near future; and,
3. Deliver a, with prejudice, Plan of Compromise/Arrangement the earlier of either; three days after Campbell declares mediation ended, or Friday, November 23, 2012.
Of course, anything can happen, even more Stays.
However, really looking like the court wants this concluded.
GLTA
Link to filing:
http://documentcentre.eycan.com/eycm_library/Project%20Gem%5CEnglish%5CCourt%20Orders%5CCCAA%20Orders%5COrder%20of%20Newbould%20J.%20re%20stay%20extension%20to%20November%2029,%202012%20-%20dated%20October%2011,%202012.PDF
Sounds like a great excuse. If the volume stays this strong since the appeal loss i will go on a limb here and predict a pump is on deck at a minimum followed by ? and you then can have this board again by yourself. No idea if it will be based on real news or nonsense like todays mm action. Ok see ya monday.
OSB Reply to My Complaint About Monitor Disclosure...
Apparently still working on finalizing the hearing order? Legitimate excuse, or maybe not. Who knows. Guess we will see when we see.
Anyway, OSB reply follows:
We got in contact with the Monitor and they advised us the hearing had not yet been finalized by the court. The Monitor advised me they are in the process of following up with the counsel to the Applicant to determine the status of the order.
Thank you, Kristopher Heiss Bankruptcy Assistant | Adjoint aux Faillites Office of the Superintendent of Bankruptcy Canada | Bureau du surintendant des faillites Canada Small Business and Marketplace Services | Services axés sur le marché et les petites entreprises Industry Canada | Industrie Canada 160 Elgin Street, Ottawa ON K2P 2P7 | 160, rue Elgin, Ottawa ON K2P 2P7 Kristopher.Heiss@ic.gc.ca Telephone | Téléphone 613-947-7722 Facsimile | Télécopieur 613-996-0949 Teletypewriter | Téléimprimeur 1-866-694-8389 Government of Canada | Gouvernement du Canada
Thats my guess , folks getting in before disclosure. Retail has been beaten to a pulp and bid ask is so tight I doubt retail has 100k to throw at this today to scoop up a planned dump. But we will eventually see the big news disclosure. Have a good weekend.
Mentioned Suspicious Earlier, More Volume of Recent...
Also do not know anything more than anyone else. But, more CRYFQ volume may be an indication of someone getting in, or getting out, before the Monitor disclosure. Pure speculation, of course. And, Friday, after COB, is typically for disclosure of the not so best of news. Although, any Stay extension is good news. Same ol' Same ol'.
Now six business days without Monitor disclosure, as mandated under CCAA.
Denega thumbing his nose at OSB. Must be buds with Fung. All these guys know each other. As far as it being busy at E&Y, nope, doesn't fly. They have their people handling it, a five minute task, if that. This delay is on purpose for whatever reason of which CRYFQ commons may never know.
One thing for sure in pinks, if filings are not up-to-date and disclosure is late or not being done, as we have both here... it does not benefit commons.
Hope it eventually works out well for commons.
GLTA
Retail buying? Nope bid and ask too tight for that game. MM games as usual. Maybe note guys decided to cherry pick here while the monitor sits on plan for the next monh. I have no idea . Maybe MM just churning the shares for some business.
Why does it seem suspicious? You have one monitor handling many cases and CCCA rules seem meant to be broken anyway. We get more disclosure now I bet than CRystallex ever had in its passed. I have not even looked but this seems like a friday news after close type company. The volume is interesting this week as usual. All seems MM driven since the and is so tight.
Amazing, Still No Monitor Disclosure...
Seems suspicious, but should not be.
Just a Stay extension, so no big deal.
Well, CRYFQ commons are used to lack of disclosure.
Hope it works out for the best.
GLTA
Into 5th Business day, No Monitor Disclosure...
Noted the following on another hub...
"Have already complained, but apparently am on the “Squeaky Wheel List.”
Seems Canadians have a higher tolerance for, “squeak,” than USA gov’t employees.
One person can only do so much. So, up to you guys. The more the merrier...
Office of the Superintendent of Bankruptcy:
Telephone: 1-877-376-9902
Fax: 1-877-827-7139
Email: ccaa_lacc@ic.gc.ca
For those not sure what to write, maybe something like; There was a hearing on Oct 11 concerning Crystallex CCAA, and there is still no Monitor update showing the court filing. Is the company still under CCAA protections?
Under CCAA regulatory requirements, all Court Filings are to be posted within two business days of receipt by monitor. Since the Monitor is in the courtroom on the day, they basically are in receipt on that day. At a stretch, could call it the day after, maybe. Now four plus (including the court date) business days have passed without disclosure. So, seems overdue.
Unfortunately, CRYFQ/KRY shareholders have been beaten into submission for so long without disclosures, that there is no longer any expectation of disclosure. Just pointing out that there are regulations that protect shareholders by mandating disclosure."
Anyway, can't hurt. Disclosure is a good thing for investors. Actually thinking that if something really bad were to happen, then it would be in the newspapers or online. Regardless, the monitor should be held accountable as they have a duty.
Ok, the creditors may be decided by some unusual scenario but the lead class will be the unsecured class imo. The judge will not be forming a class representing 5% or less of non secured debt that will have any say imo and is as likely as him deciding a shareholder committee is a good idea. Now if someone had a lien on the actual asset then it would be a whole new ball game with a whole new class of debt but thats not the case from what I can tell. If so then adequate protection payments would have been required or the asset would have been taken long ago or most of the stock anyway.
I think GRZ had a concession or certain property rights that allowed the holder of the concession certain mineral rights. I dont think they actually owned the property. Both grz and cry want cost and lost profits and interest so to me the outcome of the GRZ case is huge.
I agree its not for the faint of heart. Imo the management team is the weak link and cant even be trusted to stop bleeding cash. My immediate worry is them selling another chunk of the pie so they can live another 8 months after they piss away the last 15 mil. Im not sure if noteholders crossed a line to such a point they have lost all their leverage. Part of this required mediation will be some tough love on both parties I suspect. It really is up to the judge regardless of the noise. I dont see the stay in immediate jeopardy but that makes the market I suppose.
Group/Class is Determined in the Claims Process...
So, not yet sure what the Classes/Groups are comprised of, until that disclosure. Although, your hypothesis is likely correct of having an unsecured creditors Group/Class. The listing of creditors could be separated by common valuations, or type of credit, or hair color, or any multitude of ways. Really. Until disclosure, commons can only guess. Effectively, the major holder of credit within each Class/Group has exactly the same power as the Bondies/Noteholders. This is a significant step in the CCAA process.
The CCAA Plan of Arrangement/Compromise is not separate Plans for each Class/Group. It is a single Plan covering all Classes/Groups. Any majority credit holder within any one Class/Group can shoot down the whole Plan with a “no” vote, taking all Classes/Groups down and the company into receivership.
We, as shareholders, do not hear about the other creditors, possibly because those other Classes/Groups have already agreed, or they really have no leverage to affect shareholder value. Or, shareholders are being only fed company information making the Noteholders out to be evil. Likely both.
According to the Monitor, ongoing negotiations are currently, and through the end of the month, in chambers. If no agreement by end of month, then the Monitor will give it a shot, along with dealing with the disclosure claim, until the next hearing. At that point, if court actions/reactions follows as recent history, possibly another 30 day extension - or possibly, a Plan vote. So, could get real serious real quick. Not for the faint of heart.
Using the GRZ decision as basis is possible. Not sure of the direct correlation, but maybe. GRZ owned their property, while CRYFQ held only a contract. My thought is, if the judge is really waiting for the GRZ ICSID award, why all the little indications now? More appropriate would be: Another 90 day extension; No Plan with prejudice; No claims process. Lacking the indications would be much more indicative if waiting is the word. But, that is not what is apparently happening in current events. Time will tell.
Hope this all works out for commons.
GLTA
I hear ya but the group you refer to is the unsecured creditors group. That is a class and as far as I can tell there is no other class that will matter. 95 % are the bond holders and the rest dont really matter. No one has super primed the estate except the DIP lender so the 2/3 vote that matters is already wrapped up by note holders unless they fell apart or are about to.
Im not sure how the Claims process is wrapping things up. Management says Some note holders screwed the pooch and they want it sorted out. I have no idea if management has a legitimate claim. But if they do the dynamic of negotiations may radically shift.
If I was the judge I would push for a settlement especially if he has leverage over both parties. His leverage over Management is stopping the stays and his leverage over note guys is continuing it and possibly more harsh sanctions. Really could go either way but my gut says stays continue at least until GRZ decision is read. Its the best barometer for this case.
There are better spec plays no doubt but i will roll the dice a bit longer.
In CCAA, Creditors are Broken in Groups/Classes...
This is mentioned in the most recent CRYFQ motion, Fung's affidavit, and the Monitor report. The claims process. And, is yet another little thing indicating that the judge and CCAA procedure is trying to close this out. Get 'er Done!
Information on the CCAA Procedure is available all over the internet.
Anyways...
Once the Groupings or Classes are determined, which is really no big deal (can be by amount owed, or type of debt, etc.), the company's final Plan, previously negotiated, is disclosed to creditors for their approval. Since previously negotiated, just like a contract, everyone knows the outcome. Company needs 2/3 by number as well as creditor valuation to approve, in each Group/Class to stay alive. In CCAA, it is not really correct to say that the Noteholders, because they hold the uber-majority of debt, have final approval. Depending on how it is all Grouped/Classed, any majority in any class can pull the plug on the whole deal.
So, at that point (likely around the end of this current Stay, possibly another extension, or maybe I will be incorrect and it goes extension ad nauseum), it is either a YES or a NO. If YES, everyone lives by the Plan. If NO, there will not be any continuing negotiations, there will not be any renegotiation, there will not be any do-overs. That is it in CCAA. Final. Company gets scuttled.
This is why there is all the current drama and meeting in chambers calamity. Also, notice, the Monitor has yet to post the filings, regulatorily required within two days of receipt. Since they are there in the courtroom on the day, they basically are in receipt on the day. Yet, no disclosure as of the time of this post. Maybe at COB, but who knows.
Sincerely, hope it works out well for commons.
GLTA
<<Being so close, with all creditors except bondies agreeing, and a result of scuttling the company will say the system does not work. Not a good thing for the CCAA system. >>
Not sure what you meant by this statement since the note guys are 95% of unsecured debt.
Really it could break either way. In many ways the fact that there is only one real creditor that matters makes a debt roll much easier. They offered shareholders 14% at one time, maybe the fair thing to do is offer them 14% interest as a start. I do suspect if there was a big give away planned on the first management plan, that we may finally see next report, the stock would have really tanked. Thats not to say it wont eventually go that way but the holding pattern seems intact.
We will just have to see where the judge draws the line and the judge has been key. It may be 3 months or 3 years or somewhere in the middle. I do believe its a political issue and I believe he has no love for New York style tactics in his court. I do believe the judge is more inclined to let things ride for awhile and possibly put pressure on note holders at least until a GRZ decision is read. That in my view will be key as to the extent of further stays. Lets face it, if GRZ wins big it will be hard not to let Crystallex finish the game. My belief is management has alao pinned futher fundings based on a big GRZ win.
Hope the Best on Finding Anything Else Close...
Been there. Done that. CRYFQ would be atypical to the extreme. The Stays going on for years and years are few and far between. Going by what is typical, the Stay is extended for around a year, on average, and a Plan is set. Never a guarantee on potential. The potential treasure, under the rainbow, is not getting any attention likely because the judge can do a quick calc (or, more likely has already done so) to get reasonable ballpark numbers. But, again, no guarantees on potential. Then there is the collection aspect of the potential award, likely many more years. So, will just agree to disagree. Would be very glad if proved wrong should this continue on with Stay after Stay ad nauseum, just as long as it is good for commons.
However, seems the writing is likely on the wall with the previously mentioned, "little" things happening. Judge apparently wants a Plan done and voted on within the CCAA guidance, and under the typical average timeframes. Judge also seems to have a bit of a personal stake in this, as he somewhat represents regulatory oversight. Being so close, with all creditors except bondies agreeing, and a result of scuttling the company will say the system does not work. Not a good thing for the CCAA system.
The spending issue may very well be all a part of the shenanigans. It is becoming obvious to many that the company will need funding and it is possible that management will arrange a sweetheart deal to noteholders for a survival loan, as a part of the Plan of Arrangement/Compromise. Tenor's loan amount never seemed to be enough to me from the get-go. Who knows. Lack of disclosure makes for uncertainty, and the Market hates uncertainty.
Still think it may all be a grand act of shenanigans by management/tenor/bondies, and they will come out fine. Commons, on the other hand, not so sure. Still, as always, hoping the best for commons.
GLTA
I will look around for some other examples at some point, but yes nortel and one of the airlines had a long haul in CCCA.
On most cases its a liquidity crises that brings about a CCCA and usually assets dont cover debt. Game over. The longer cases generally involve labor issues and smaller pieces of assets to be sold. Crystallex is much simpler case for the most part . Only one significant creditor and they have no way to be paid until a settlement is paid. They could of course allow Crystallex to emerge and allow liquidity back in their discounted bonds and still profit but thats another story. Another issue the judge may ponder is the political aspect of this case. Management is to blame for much but VZ should not get the pleasure of destroying companies for their benefit. It sends a bigger message if CRY can emerge intact and continue the fight.
CCCA in some ways is the perfect forum for a case like Crystallex. The prize is at the end of the rainbow with the goal of everyone getting a piece. The CCCA goal is a plan but as we know stays can last years and there are no rules as long as the judge likes the process. Before I see any end of Crystallex's stay i believe at a minimum the judge would actually hire consultants to value the claim as it stands and also estimate the likelihood of recovery. So far no attempt has even been made along that route and that would burn another year imo. Time is actually a friend if management can manage to not spend all the DIP money before Nov 13.
Can management show some control on spending? Well they will have burned through 21 million of the 36 million plus equipment money in 12 months. They continue to be the biggest threat to SP imo and dilution is 12 months away unless they get the burn rate in the 600k per month range. Maybe their plan is a big pop in sp to ease the pain of another 25 million share dilution. I just dont know but when I talked to HR all I got is there is plenty of money to last. Ya sure.
Closest Ticker Found to CRYFQ Situation was Nortel...
...and it is not really all that close. Just lots of Stays so they can sell off parts. I understand that CRYFQ's situation appears unique because of the potential award. Shareholders believe it because of the potential, but it is still just that, potential.
There are never guarantees in predicting the future of a potential award. Anything can happen. Each and every company situation is felt by shareholders to be unique, and it can be seen on each and every hub here, and hubs everywhere else - The feeling that, because we are shareholders of this company, our company's situation is more unique than everybody else's, is not all that unusual.
The court will likely take the, "unique potential," into consideration, but also will consider the reality that potential cannot be considered as being an absolute certain outcome. And, the CCAA guidance is clear that a Plan is the end game. No Plan, the company is scuttled, which is a reality and can very well happen - and is not all that unusual in CCAA.
Recent events appear to indicate the court has likely had enough of the stalling. Typically, and on average, a Plan is negotiated in less than a year. A year is now being approached. Now, the extensions are shorter and the recent order instructs to show up with a Plan, plus the monitor is going with a shorter recommendation of Stay extension than the company wants. These little things may be adding up.
Next after a Plan, and coming out from the protections of CCAA, the company must get up-to-date fins. There is absolutley no reason to withhold the fins at this time. Suspecting something not good for commons being held back, as yet unknown, is the reason. And, the Class B preferreds means B for Bondies. SEC is hammering companies that are behind on filings on a Daily Basis. CRYFQ going to the Greys would not be a good thing.
Stay Diversified.
GLTA
Disregard info about stelco. It was in CCCA for well over two years but shares were worthless at exit. This is a much different case in the asset is potentially worth billions and the process getting their is all the same. In the meantime MMs take us where they want.
I think the court is aware of their duties to facilitate a plan of compromise. I believe these 30-45 day extensions are prudent as it makes the parties talk. Does it mean the judge is getting tired of management? In my view no. Does it mean he is tired of Bond guys? Again in my view no. I think it means he wants them to negotiate in good faith per CCCA rules. I believe Stelco played this game over two years and shareholders remained whole.
When the judge says or implies the best solution is proceeding to arbitration then he may actually mean it. When judges says the note guys strategy failed, they probaly mean it. In my view his view is they should wait without being rewarded more than what is owed. He is well aware most of these guys are in at 40 cents on the dollar as it is so them waiting for a doulble plus interest is not unreasonable. Technically it should not matter what they paid for the notes but I believe it is a factor.
It really is a strange CCCA. One for the books really. The SC said dont waste our time with it so once again I assume the judge has complete control to extend stays at his discretion. He may feel now is the time to strike a deal since appeals are done so stays are short. Does that mean management will roll? They seem to be about the cash and the paychecks so I really dont know. But I dont see why they would have to roll at this point since their original argument was our position is to wait until arb decision. They since had to modify that stance since it spits in the eye of CCCA rules.
Dilution with our shares is a issue with me. I dont see tenor in any trouble as dilution would come out of management and shareholder stakes. So once again does management want to share? I doubt it as any dilution would be from a 65% remaining stake.
Maybe. The Game Must be Played Carefully....
There is regulatory oversight that trumps everything, and needs to be taken into consideration by all players involved. The drama, all of it, has to be believable. Completely.
The court smacked the Noteholders early on because they spoke out of place of the CCAA procedure. What they asked for - everything including the kitchen sink - is really not an unusual award in CCAA. Noteholders just jumped the gun early on and asked at an inappropriate time. Can't really blame them for wanting their money/settlement now, if not yesterday. Now, during these current negotiations of the contract, called a Plan in this case, is the time to ask for what they want. Apparently what Bondies ask is unreasonable, according to Fung, and we need another Stay extension, meeting in chambers, blah, blah, blah.
So, maybe times have changed. Maybe not. But, not so sure the court is firmly in the company's corner as much now because of Bondies speaking out of place early on. There seem to be some small indications - The shortening of Stay extensions to about 30 days instead of the previous 90 days,... The order to submit a Plan of Arrangement/Compromise, with prejudice on Oct 11,... Also, the monitor is uncharacteristically not going with what the company wants for an extension, but recommending a 30 day Stay extension.
This all may be adding up to the court growing impatient with the continued delays, and Fung over doing the extensions. Should see day after tomorrow, or there abouts, when the Monitor posts the order.
Hoping all the best for commons.
GLTA
If cahoots was the plan Management should have rolled over long ago as they fulfilled their fiduciary responsibility to shareholders. At this point it becomes much harder for management to give away the goodies since they have the court firmly in their corner. The judge is no friend of bondies and they have solidified their position on ice. On top of that if they were all in on a share giveaway scheme management bringing up this latest charge seems over the top. Once again why bother.
Im thinking this may be a perjury or being less than honest situation note guys are now facing and not the workings of friendly or planned situations. The lead attorney hitting the highway is always a bad sign. That seldom happens as the cost is huge to get another lead up to speed. It could mean serious doo hitting the fan in bond land. Now we have court ordered mediations before the judge rules on the claim that the monitor appears to back.
As far as the financials I think mamagement stated their goal was by end of year. As far as a reorg plan, kicking the can down the road is well within he scope of CCCA as long as an effort is made that satifies the judge.
Can't Think of Reasons to Not File Fins...
...except to hide something at this point. Money is now there to do the fins - the appropriate way. The "Information Document" can be a lot of things, but it is not fins. If it were, they would be back to trading in Canada. With the SEC cracking down on companies not keeping their filings up-to-date, that will be another fire-drill the company will have to do when coming out of CCAA protection.
Still thinking that Management/Bondies/Tenor are up to their shenanigans and all in cahoots. What is unreasonable to Bondies is reasonable to Fung, while what is reasonable to to Bondies is unreasonable to Fung. All the drama may be a way for Fung to blame any give-away on the court.
My take on the other board is that stuckholders have resigned themselves to just accept being stuckholders.
GLTA
Like I said not sure of the logistics of going through a broker to sell shares, maybe some on your other board know if it can be done or is even a practical.
Not sure they are trying to hide anything, if they were I doubt they would have spent the money on 2011 EOY filing. I mean what a waste.
Ya the cash burn is UGLY, maybe they should get one of those high priced consultants on that.
Well, the Ticker was Delisted on TSX and Venture...
Imagine anything is possible to trade shares if absolutely necessary, maybe even some back room deal or whatever. Might cost more than normal to do such things. Shares under normal Canadian jurisdiction within Canada, can only be moved under strictly defined conditions, such as for tax loss.
Link to Company PR:
http://www.crystallex.com/News/PressReleases/PressReleaseDetails/2012/Crystallex-Announces-Temporary-Cease-Trade-Order1128999/default.aspx
There is a link in the company PR to the actual "Temporary" Cease Trade Order. Six months come tomorrow. Yepper, temporary.
The company is well in arrears on their financial disclosures/filings. Are they trying to hide something? Well, they are not filing anything except some look-alike financials that are not yet considered as appropriate. Not saying it is happening here, but Not Filing or delayed filing, especially in Pinkies, typically indicates the company is trying to hide or delay disclosure of something. For whatever reasons, likely not good for commons.
And once outside of the CCAA/11 protections, they better get a move on, on those fins, because the SEC has been stepping up their Trading Suspensions for filers not up-to-date, and the Greys could be next stop. Also, not good.
As for the cash burn, here is my post on another board:
"On the million a month being spent.
Using, on average, 21.67 work days in a month...and, 8 hours in a work day..., that's about 173.4 hours/month, or 10,402 minutes.
They are burning about $96 dollars per minute.
More than $5,750 per hour.
Man, we all gotta find a gig that pays like that."
Have a great wekend.
GLTA
I have heard selling Canadian shares through a broker is possible. Not sure about the logistics of it all. The biggest problem in my view is Management cash burn. Over half the Dip money is gone. Its time to circle the wagons and just stop. Maybe IR needs to go. Maybe consultants need to go. Maybe bonuses/MIP advances need to stop. Why money is still being spent in Caracas is a mystery. How much remediation still needs to be paid? Its not hard to figure it out but unless its stopped another round of dilution will be in store late next year.
As usual I see MM control of this stock absolute. 125k traded at last minute with tiny bid and ask that fell right in the pocket. My hope is they absolutely want to move it higher, maybe on a note deal.
Our Canadian Brother/Sisters Have Been Under Cease Trade...
...since Friday the 13th, of April 2012. Going on being stuckholders for six-months now this coming weekend. Friday the 13th. Management seems to pick great days to inform commons, don't they? Christmas Eve for the CCAA announcement, and 9-11 for one of the Stay deadlines. Maybe it is a big joke or something to management.
Next Stay deadline falls on a Sunday, so management will likely get extended to the Monday, so 32 days to work the Plan out. Of course, that is just a guess since commons find out several days later, depending on whenever the Monitor (oxymoron title) gets around to it. Who knows, maybe there is a Plan already.
Canadian traders may trade under limited circumstances, such as for a tax write off. And the seller must give written notice of what is going on (CCAA) to the buyer. Also depends on liquidity, of course if anyone else actually wants to buy. Entering the KRY ticker on the TMX, comes back with "The Symbol You have entered is not valid."
Any CEO who allows a stop trade or trade suspension really has no actual care for shareholders. One other note about the CEO. He is associated with SDRG. So? Well, SDRG recently had trading suspended, and now resides in Greys. Usually these guys do not change.
Still, Hopeful for Commons.
GLTA
I thought canadian shares at least could be traded through a broker. Is that not true?
Rumor has it there was a hearing today.
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