IMO, it is critical for KRY to settle with VZ and soon. That or get an extension from the bondholders which I doubt they will agree to. If KRY has to do a financing and dilute the company to pay off $100M, then this will drastically reduce the share price when we receive our arbitration award. If we can settle now for a fair amount, say $1B, we'd be just as well off. Let me explain in numbers.

$2.8B award:

We'd need about 1B shares to raise the $100M to pay off the notes based on a financing at .10/share. That is if we can do that. That would give us approx 1.4B shares total.

$2.7B / 1.4B shares = $1.93/share after you pay off the $100M in notes.

$1B settlement:

$900M / 400M shares = $2.25/share after you pay off the $100M in notes.

Worst case is that we go all the way and have to do a financing and then only score a $1B award. That would only equate to a $.64/share price or so.

And it goes without saying that there is much less risk in negotiating a settlement for both sides, its much cheaper for VZ to settle and less legal fees for all.

That is why it is important to try and get a settlement done now before the notes come due.