FK,

I have to assume this is why the noteholders have been so vigilent in pursuing litigation against KRY. The only way they're ever going to be repaid is (1) refi or (2) a portion of an arb award. It's my understanding that KRY won the most recent case against them and that KRY was awarded their costs. I believe the noteholders have appealed that ruling and the appeal is still pending. So the question is why? And my only conclusion is that the noteholders' claim doesn't have teeth unless and until a final judgment is entered in their favor. So the quicker they get to that judgment, the better for them. What will they do once they have a final judgment? Well, everyone knows there are no liquid assets that will satisfy the judgment, so my best guess is that they intend to use the leverage from a judgment to negotiate a chunk of the arb award for themselves --- a restructuring of the notes. In other words, they may say "We have a judgment against you and we will agree to halt collection efforts on that judgment in exchange for XX percent of the arb award." Obtaining a judgment seems to be the key for them. They must know that the arbitration process is likely they're only route to the $$. In order to maximize the possibility of obtaining an award, KRY needs to stay in the driver's seat to control the arbitration because of their degree of knowledge regarding the claim. It just would not make any sense to me for the noteholders to put the company in a position which would decrease the likelihood of obtaining an arb award. In that case, everyone loses. Maybe I'm missing something, but that's the way I see it. JMHO.