I will give you my thoughts but again no facts.
Retail investors hold the majority of the votes. To put somebody on the board or remove the board it would take a coordinated effort from retail which is hard to do for many reasons. If I had decided to try and get on the board I would have needed to get enough retail votes by contacting people ahead of time for their vote at the agm. Another route would have been to get the votes ahead of time an be added to the official mail out.
The non retail votes are still here because of Fung IMHO. The fact that we need to secure financing to survive puts our best interests back with Fung. He has the best chance to arrange a deal at this point in time. Fung didn't say we had no chance of funding the arbitration case. What he did do was in my opinion lay out the worst case which would be the noteholders taking over the majority of the company. In the slide however it says"
A restructuring of the existing notes could result in the noteholders gaining a
substantial ownership interest in the Company. It would not be surprising if
the noteholders were to believe that a restructuring of the Notes could result
in their ownership of most of the Company."
I think this was put there for a couple reasons.
First it tells us what the noteholders motives may be in the lawsuit. To my understanding the percentage is 60%-65% of the notes are involved as well as one of the note holders being a major share holder. It would be a simple way for the noteholders to gain control of the arbitration case and award.
Second I think it makes it clear that Kry will be doing a financing with another party to eliminate the noteholders to retain control of the arbitration case. It may not be great for existing shareholders but will be better than losing the company to the noteholders.
The reason I'm prepared to wait this out longer than I should is I believe Fung will find the financing. The games with the noteholders has more to do with negotiating a settlement of debt. This is why they are suing again. It is possible the noteholders may win but their timeline isn't great. They want to get the best price for their notes and this is pressure to pay more.
Whether right or wrong Kry has maintained since the first lawsuit and comments from shareholders saying things were promised like shortly after Easter that they will only comment on what they can deliver. Some may argue the promised deal with the Chinese never happened but it was contingent of VZ doing their part which they didn't.
Please don't take this as a buy at .09 and we will be rich later comment. I am not recommending anyone buy into Kry. For those of us already here however the story is different. Sell now or wait to see what happens. I will wait!
I'm gone the rest of the day on business so will answer questions later unless to late.
JJ
