Tenor has assured itself of loan repayment from Crystallex through the DIP loan conditions. Actually, the company should now be called Crystallex-Tenor since the CCAA end-around option play went for a Tenor touchdown. Tenor controls Crystallex. Completely.

The DIP deal was constructed in a way that Tenor is the first in line for DIP loan payment, as well as first in line when the arbitration proceeds are divvied up (but that additional compensation is another story). The only way Tenor does not get paid back their principle plus interest is in the highly unlikely event that the arbitration is lost, or if the award amount is significantly less than the total of all debt owed by Crystallex.

Should the arbitration run into overtime, and/or collection of the award takes extra time, no problem. Tenor just loans more bucks to Crystallex. Say it goes another four years with a burn rate of $1MM/mo continuing, just to take an extreme. Tenor just loans out another $48MM. So, now the debt to Tenor is $85MM plus interest. Call it maybe $175MM due upon award. Maybe Bondies are owed $175MM principle plus interest at award time. That is $350MM debt plus minor incidental debt. Speculated minimum arbitration award is higher than that.

If these Tenor guys are good - and they are probably very, very good, plus smart - they know what the minimum award will be. So, to Tenor, loaning money to Crystallex, up to a certain point, has minimal risk. It might even be considered low risk for Tenor.

Bottom line about Crystallex-Tenor loans - As long as the ICSID award amount is higher than whatever principle plus interest Crystallex owes, Tenor has itself covered.