The court documents from the noteholders referenced part of their settlement coming from arbitration so I don't see them having a problem with it. I also believe that the firm that was hired to find a comprimise with the noteholders is still employed at present.

It is possible that Fung may be able to use the pressure by the bondholders to his advantage when negotiating with these bananaheads. Fung to Hugo..."we would love to give you the additional time you are requesting [translation: more time to yank our chain in an effort to bankrupt us] to come up with a mutually acceptable agreement but we are dealing with circumstances beyond our control. Our hand is forced by our bondholders. We MUST have this resolved to our satisfaction by July 31st or we will be FORCED to file for arbitration due to the situation with our bondholders"