CRYSTALLEX INTL CORP COM (fka CRYFQ)

[jcwillis]

CCAA Similar to US Chapter 11...

Settles with creditors through a Plan of Arrangement/Compromise.

Lots of back room optimism that the CRYFQ revoked commons retain rights and benefits. Even though CRYFQ revoked shareholder's biggest right and benefit, liquidity, has been taken away. Currently, the Stay ends May 17. If a CCAA Plan happens, it will likely eliminate revoked shareholders. CCAA considers shares of a currently illiquid company as having no value. There is good reason why CCAA does not allow shareholders to vote on a Plan.

Kodak now going through Chapter 11.
Current shareholders are being ousted...
http://online.wsj.com/article/BT-CO-20130501-711457.html
Excerpt from story: "Kodak's current shareholders would see their shares canceled and wouldn't receive any payment under the Chapter 11 plan, which is subject to the approval of Kodak's creditors and the U.S. Bankruptcy Court in Manhattan."

Should CRYFQ revoked commons survive CCAA, and are included in the Plan of Compromise/Arrangement, there is a virtual guarantee of revoked common share future dilution. Crystallex runs out of money on May 17, or shortly thereafter. The company needs funding to get to the "promised land" of ICSID arbitration, and beyond to await payment. Crystallex recently signed a contract for the current funding (lasting through May 17), making their, "Lender of Choice," Tenor KRY Cooperatief U.A. For the previous DIP Loan, Tenor KRY Cooperatief received about a third of the arbitration proceeds. Very likely future CRystallex funding will give away arbitration proceeds to Tenor KRY Cooperatief.