I do not understand the concept that Dec 23 is a date of any real significance and I do not share the view that bankruptcy will necessarily harm the company or the shareholders except possibly in the short term when the share price might move down even further.

As to Dec. 23 being a drop dead date of some kind, that may be the date the notes are due but it will take the noteholders at least 6 months before they can begin to seize any assets of the company, whether cash and equipment, the right to the proceeds of the arbitration claim, or kry's data room on LC. In order to seize any of these assets the noteholders must first obtain a judgment on the note. This will take a matter of months to do.

At that point they cannot simply have a marshal or sheriff seize one or all of these assets. Rather, they must then file a second suit in the jurisdiction where the asset they are going after is located. That is because the judment on the note cannot automatically be enforced by the court where the asset is located. Rather, the noteholders must file this second suit in the court where the asset is located and ask that second court to recognize the judgment of the other court and enter its own judgment on that froeign judgment. This too will take a matter of months.

Once they obtain this second judgment (in the state where the asset is located) they can ask the sheriff or marshall to levy or attach that asset. This also takes time. If each of the assets is in different states or countries, then a separate second judgment must be entered in each of these jurisdictions where the asset is located in order to seize each of these assets. Obvioulsy, this complicates things and takes even more time. For example, the company's cash may be in an account in Vancouver, its equipment may be at a port in Texas, and the data room may be in some foreign country.

Moreover, once the noteholders are about to seize an asset, the company can file for bankruptcy protection (seeking to reorganize and continue operations, not liquidate) and the bankruptcy judge will restrain the noteholders from taking any action to enforce the notes. The noteholders will then be required to file their claim in the bankruptcy court and the judge in conjunction with the trustee appointed by the court to take control of the company's ssets will decide what to do next. Without a detaild explanation, I am confident (rember, just one person's opinion) that the judge will allow the company to proceed with the clam and use the cash and/or equipment of the company to pay attorneys' fees and continue the operations of the company and will not allow the noteholders to control the arbitration claim.

There are a number of reasons for this. The noteholders are only owed roughly 120 mil while the claim is worth billions. Also, it is the company and its attorneys exclusively that have the knowledge to proceed with the claim; the noteholders would have only minimal competence and ability to proceed with it. In addition, the court will not abandon the shareholders at the expense of the noteholders and will want the shareholders to recieve maximize value, especially where, if the arbitration is succesful, there will be more than enough to pay both the noteholders and the shareholders and where, if the arbitrtion claim is pursued but unsuccessfully, the noteholders will be prejudiced very little because they wll receive only a small percentage less than if the arbitration claim had not been continued. The "little less" would constitute the 10 mil or so needed to pay attorneys' fees and working capital. Thus, if the noteholders are not paid off at all, I would submit that there is nothing the noteholders can do to harm the company or its arbitration claim and hence, there would seem to be no purpose in bowing to any unreasonable demands of the hedge funds.

There also appears to be the assumpption that the noteholders need to be paid a full in order for the company to avoid bankruptcy. However, I can't help but believe that they would take 50-60 cents on the dollar to fully resolve their claim without having to sit on the sideleines while the arbitration proceeds over the next few years. The company might therefore only need to raise 75 mil rather than 120+ mil.

Remember, this is just one person's opinion.