Some background info on this here.

Crystallex International Corp. (“Crystallex”)

Ravensource has a significant investment in Crystallex’s 9.375% Senior Notes.  We  receive  more calls from Ravensource investors on this investment than all others combined. Investors generally see Venezuela and panic or are willing to sell at any price. However, most of our investments —debt of bankrupt companies, for example — are counter-intuitive to most investors. Our contrarian approach emphasizes analytical rigor over emotion, providing us with the conviction necessary to pickup bargains that provide an attractive return if our analysis is correct and a margin-of-safety that helps protects us when we are wrong. Crystallex is a perfect example.

As asynopsis of our investment thesis, Venezuela owes Crystallex approximately U$1.5bn from an International Centre for Settlement of Investment Disputesdamages award (the “ICSID Award”). In  turn,  Crystallex owes its  debtor-in-possession  lendersapproximately  U$120mm  and  its  other class of creditors — of which the Senior Notes comprise more than 95% —over U$250mm. As long as Crystallex receives at least U$370mm, or just 25% of the amount it is owed, the Senior Notes will receive  up to $240 for each $100 of par value of bonds. Under that scenario, Ravensource would earn a return in excess of 200% over and above the June 30th, 2018, market price of the Senior Notes.

In November 2017, Crystallex and Venezuela entered into a settlement agreement (the“Settlement Agreement”) whereby Venezuela is required to make a  series  of payments  to  Crystallex while Crystallex is required to stand down on its legal actions to collect the ICSID Award. After paying Crystallex  US$43  million, Venezuela  stopped  making  payments  to  Crystallex in  April  2018, releasing Crystallex to go after Venezuela’s assets.

The magic of an ICSID Award is its enforceability outside of Venezuela with the right to seize assets in  the  event of  non-payment.Venezuela  has  significant  assets  inthe  U.S.  and  other  jurisdictions that  recognize  ICSID  judgments.  Citgo Petroleum  Corporation(“CITGO”) —Venezuela’s U.S.-based refiner, transporter and marketer of transportation fuels, petrochemicals and other industrial products—alone should be more than  sufficient  to  fully  repay  the  Senior  Notes  with  plenty  of leftovers. With CITGO now firmly in Crystallex’s sights, a tipping point is potentially on  the horizon  that  could  have  an  extraordinary  positive  impact  on  the  value  of  our  Senior  Note investment. We remain optimistic of the prospects on this truly esoteric investment.