"TORONTO, Dec 17, 2004 -- Crystallex International Corporation (TSX:KRY) (AMEX:KRY) announced today that it has priced and entered into an underwriting agreement in respect of a U.S.$100 million offering of units. The units may also be sold on a private placement basis in jurisdictions outside of Canada.

Each unit will comprise U.S.$1,000 principal amount of senior unsecured notes due December 2011 and 65 common shares of Crystallex. The notes will bear interest at the rate of 9.375% per year and will not be convertible. The units will separate into notes and common shares immediately upon issue.

The aggregate number of Crystallex common shares issuable pursuant to the terms of the offering is 6,500,000 which represents approximately 3.5% of the currently issued and outstanding common shares of Crystallex.

Crystallex plans to use the net proceeds of the offering to fund the development of the Las Cristinas project."

Just thought of something only speculating here, dont know for sure, but if the bonds are backed by assets which will possible be the Mine Operating Contract and the mining equipment then I'm thinking they are pretty much screwed, a portion of proceed from sale may be all they will get in a settlement, I could be wrong here, welcome any other insight