In reference to Bkbruce's risk that the payment to the shareholders is delayed....

In the Monitor's report # 18 there is a section that describes the court-approved mechanics to pay the KRY stakeholders, which is copied below. 

Per the distribution mechanics, all the debt and earned interest must be paid before Tenor, the Management MIP and the shareholders get a penny of the Net Arbitration Payment – NAP, which the money left after everybody else is paid.
On this basis, once all debt is paid, there is no reason for KRY to remain under CCAA protection, and the shareholders can, therefore, regain control of the company and prevent any delay tactics. Fung and the Board of Directors and the CCAA court also approved Tenor’s option to convert its portion of the NAP into KRY shares, which would dilute current shareholders to a minority stake, but even if Tenor decides to do so, they could not delay the payout without justification.

Mechanics of Distribution 
Pursuant to the distribution mechanics set out in the Fourth DIP Amendment, subject to the
charges set in the Initial Order, the Arbitration Proceeds shall be applied, effectively, in the
following order:

a) first, to pay any accrued and unpaid post-filing expenses reasonably incurred by the

Applicant;

b) second, to pay any taxes payable or required to be withheld by the Applicant or by any

government with respect to the Arbitration Proceeds; (the amount of taxes payable

cannot be determined until the realization of Arbitration Proceeds.)

c) third, to pay into the Principal Cash Collateral Account (as described in the Credit

Agreement) an amount so that the aggregate amount in the Principal Cash Collateral

Account equals to the outstanding balance of the DIP Loan, including both principal

and accrued interest thereon after the date of such deposit (the “Date of Deposit”)

owing by the Applicant under the DIP loan, until paid in full (the date upon which the

full amount is deposited therein, the “Principal Cash Collateralization Date”); and to

pay directly to Tenor then any unpaid interest accrued from the Date of Deposit to the

Principal Cash Collateralization Date and the DIP Lender’s unpaid expenses and other

indemnity amounts;

d) fourth, to pay any outstanding balance of the Notes and any other unsecured pre-filing

(“Other Unsecured Claims”) in accordance with the Claim Procedure Order dated

November 30, 2012, including all amounts payable pursuant to the Standstill Order

6

(defined hereinafter). Specifically:

i) The accrued interest on the Notes includes: 1) 9.375% per annum simple interest

accrued on the principal balance of US $104,135,273.97 from the CCAA filling

date to the Standstill Termination Date; and 2) any incremental interest in

excess of 9.375% per annum on the balance of US $123,383,269.90 for the

Standstill Period;

ii) The accrued interest on Other Unsecured Claims includes: 1) the contractual

rate, if any, accrued on Other Unsecured Claims; and 2) any incremental interest

in excess of the contractual rate accrued on Other Unsecured Claims during the

Standstill Period.

e) fifth, to pay the DIP Lender’s entitlement to the difference between gross amount of

the Arbitration Proceeds and the aggregate of the amounts referred to in 19 (a), (b) (c),

(d), (e )(i)(1) and (e)(ii)(1) (the “Net Arbitration Proceeds” or “NAP”);

f) sixth, the Key Participants’ (defined hereinafter) share up to 25% of the remainder,

which equals to the total Net Arbitration Proceeds net of the DIP Lender’s entitlement

to the Net Arbitration Proceeds; and

g) seventh, the remaining balance of the Net Arbitration Proceeds to the Shareholders of

the Applicant. The Shareholders shall pay the Trustee’s pre-filing fees and expenses.

The Applicant shall make payments to the DIP Lender, the Key Participants and the

Shareholder, pari passu and pro rata, based on the percentage of their Net Arbitration

Proceeds.