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Re: None

Wednesday, 10/17/2012 5:40:54 PM

Wednesday, October 17, 2012 5:40:54 PM

Post# of 319
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

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