nobear, i follow your thinking but i'm not sure where the 350mil shares # comes from. it's hard to speculate on the amount of shares to be issued to pull out of the noteholder deboggle... at .10 we'd need 1bil new shares, at .50 we need 200mil...i dont think share issuance is a good way to go.

maybe a new note issuance would be the answer? this is pretty over-simplified but what if kry issues a $100mil worth of notes paying $400mil in 5 years?? the attraction for investors would be 4x your money in 5 years. the downside is arbitration risk.

overall i believe this is a sellable solution. if the arb case is anywhere near as solid and valuable as most believe it is, then the risk is'nt really all that bad, especially if the noteholders have first payout (an award of at least $400mil should be a pretty solid gaurantee imo).

if kry is awarded $1bil in 5 years then the bondholders get $400mil, the shareholders get about $1.50 PPS....i like the idea and believe there would be investors for this type of note IF kry can stress the strength/value of the arb case.