The hearing tomorrow is about DIP Financing. It seems the note holders, with their submission, are attempting to cover all scenarios that may play out. Skimmed the portfolio manager's submission and not quite sure what they are offering right now but I do know that Crystallex submitted a DIP proposal, following the instruction of the court, for $36m with the winning bid by Tenor.
The submission by Crystallex:
*Arbitration/operations financing to see us thru will cost us 10% interest + 35% of award once certain conditions are met.
*Leaves Crystallex with 65% of the award. (I know I know).
Key questions (and obvious)
Does the monitor support Crystallex's proposal as written?
Will the judge rule in favor of Crystallex's proposal as written?
After DIP is decided then the next question will be if the judge views that the UNSECURED debt of the note holders will just have to wait until award/settlement? This question probably will not directly be answered now since the hearing is about DIP but we may get some hints from the judge. It does seem everyone wants to get the answer to this question asap.
Whether agree or not, good for Mr. Reyes for taking his time and expense to voice his opinion.
Just waiting to see the monitor's report (guessing today) and what the judge has to say tomorrow.
Based on the note holders submission it does seem the minimum ownership of the company for common shareholders went from potentially zero to a minimum of 14% (plus 5%) from the note holders point of view. It's a start.
