pretty much. Their plan is to essentially wipe out all shareholder value so they can be paid. Fortunatley for CRY in the affidavit, the Judge seems to side with CRY about the creditors claims against the company.
My take is a little different. I agree that their plan is to wipe out the existing shareholders but it isn't to get paid. There are a ways to get paid without wiping us out. Kry has a plan that will raise DIP money.
The noteholders in their initial objections back in Dec. said that Kry doesn't need Dip financing and if they do the want to be the lender. Kry then wants to arrange financing to pay off the note holders so they do get their money.
At issue according to Fungs affidavit is the new debt people don't want to be dragged into court by the old debt holders so they want the court to approve the financing before going ahead. The note holders are saying Kry has had ample time to find financing and if they could they would have by now. They believe Kry is simply stalling. Whether what Fung is saying is true or not will be decided by the judge.
The note holders want to own the whole arbitration process in my opinion. It isn't about $100 million it is about billions if Kry gets everything they are asking for. I don't think that will happen but who knows.
Something I find funny is how the note holders say our shares are worthless and want them terminated. They state that if we really believe Kry has value we can buy new shares. If there is no value in Kry then why would anyone buys shares. Secondly, since most existing share holders aren't institutional there is no way they would have the money to buys shares back after the losses they took the first time.
If the note holders plan was to move ahead they would try to raise money by selling new shares. The question is how would you market these shares? Probably by saying that the new Kry would be in line for 3.8 billion award. Gives a new meaning to the saying one mans junk is anothers treasure.
The note holders have some very valid complaints about the cash burn Kry has. By using CCAA and a monitor everything has to be approved by the court so they will decide what is right and what is wrong.
For the note holders to suggest that they are the best option for Kry for financing is simply laughable.The note holders tell us we have no value yet they are fighting to stay in the game by doing the new financing.
If all the note holders want is their money back they could easily get it by stopping their goal of wiping us out.
JJ
