Happy Christmas from New Zealand!

It's 0430 hrs Christmas morning and I can't sleep with the time zone / jet lag.

First off, I was in transit between Canada and New Zealand when this event happened, so I was in ignorant bliss at 30,000 ft.

For the record, I'm not happy about the outcome of the PP but I'm not really surprised. From the information I was getting, the lead investor was pushing hard for better terms on the CVR %, in excess of 50%. The requirement for a court ruling mentioned in RF's affidavit was a new twist that I didn't know about.

Still I don't think panic is appropriate. Restructuring under a CCAA is not the end of the world. In fact DIP financing will be easier to negotiate because it will be senior to all existing debt and will be for a smaller amount (enough to finance the arbitration). In theory, the terms would be better as the risk would be less (senior debt and smaller amount) RF has mentioned that the company intends to auction for DIP financing and this makes sense as there would be a greater pool of money interested, therefore the best terms would be negotiated (DIP financing is definitely more mainstream compared to the offered PP).

In my opinion, the mention of preserving shareholder value in the affidavit is important. It was one of the reasons put forward for the granting of CCAA protection thus cannot be ignored when a "Formal Plan" is presented for court approval because a judge would not accept a proposal that didn't balance the rights of the RETAIL shareholders with those of the creditors. The distinction is important and RF emphasized the fact that the majority of shareholders are retail and not institutional investors in his affidavit.

Finally, I would like to state that the information generously provided by Teut and Turtlefoam was consistent with the information that I was getting at the time. Those who are slamming them with innuendo and conspiracy theories should shut up or be banned unless they are able to provide proof of ulterior motives.

I wish everyone a Happy Christmas and New Year, enjoy the company of family and friends and forget about KRY for a couple of days...

Cheers,

NZranger