Thank you Vlada for talking to the Canadian judge.

I seriously doubt KRY will be able to raise the money by Dec 23rd.

Therefore the question becomes: Would the Canadian bankruptcy courts see the cancelled contract (and the arbitration case with an unknown outcome) as an asset?

If you ask KRY they will tell you they are unsure if the Canadian bankruptcy courts would see the arbitration case as a true asset.

So I ask a US federal bankruptcy judge with over 40 years on the bench the following question:

Company A has a contract with Foreign Government B to build a huge factory and share in the profits from that factory.

Foreign Government B decides to nationalize that factory (and the industry) and cancels (what Company A believes to be) a valid contract.

Company A files a multibillion dollar case against Foreign Government B in international arbitration court because they believe the contract was valid and in compliance when it was cancelled without cause.

That case is currently proceeding through the arbitration court but the cancellation of that contract, and other factors, causes Company A into bankruptcy.

During the bankruptcy legal process would that ongoing arbitration case (that might yield a multimillion dollar settlement, or not) be viewed by the bankrupcty court as a legitimate asset of Company A?

His answer was the following: It’s up to the arbitration court to determine if the cancelled contract really was valid at the time of cancellation and, by extension, whether or not that contract is a real asset and how much that asset is worth. But Company A should list it as an asset when filing Chapter 11 which is a reorganization of a debtor's business affairs and assets.

He added: The bankruptcy court would wait until the arbitration court has made its ruling before deciding what to do with this asset and then the bondholders would get their money first if that asset is sold or cashed out in a settlement.

Of course, the above federal judge was speaking of the american federal system. I’m not sure how the Canadians would handle this, “asset or not” question.

So the question remains: can KRY finance (maybe with the help of the current pissed off bondholders/creditors) the arbitration case long enough to get a valuation on its one “asset”, or a settlement, after filing for bankruptcy?

And, even if the Canadian courts see the arb as an asset will we, the little screwed-over retail shareholders, see any of that settlement award?

Any thoughts on this?

As always I hope I'm wrong but........

Cividale