Here's the reason I'm not as concerned about bankruptcy in KRY's case as I would be with just about any other company I'm invested in. As I see it, when a company files for bankruptcy, the secured and non-secured creditors (bondholders, etc.) are first in line to take their payments out of the company's assets. In most cases, that leaves little to no value for the shareholders and therefore shareholders generally get the corkscrew. In KRY's situtation, however, its major asset is the unliquidated arbitration claim (and whatever small amount of cash and existing equipment is left). Let's say, with interest, the bondholder's claim escalates to $150 mil. That $150 mil can only be realistically satisfied if KRY obtains and collects and arb award. Conservatively, let's say the arb panel awards KRY $600 mil. After the bondholders claim is paid, that still leaves $450 mil for shareholders (roughly $1.23/sh).

In most bankruptcy cases where shareholders get zero, my understanding is it's becuase the company's liabilities exceed its assets. I don't see that as the case with KRY. The arbitration claim, while still unliquidated, is a major asset worth far more than KRY's liabilities to creditors.

Just my opinion. Please correct me if anyone sees innacuracy in my assumptions.