Highlights

9. The only way for Crystallex to pay its stakeholders is to successfully enforce the Award; if it cannot, the claims of all creditors will be materially compromised.

16. Unless and until Crystallex can One misstep in the enforcement proceedings could bring its ten-year battle to maximize value for stakeholders to an unceremonious end.

39. The Ad Hoc Committee’s Resistance to the Order is Not Grounded in Fact. Although Mr. Reid asserts that the Ad Hoc Committee should be allowed to make a “judgment call” concerning disclosure of the Financial Information, the Ad Hoc Committee have taken no steps to ensure that such a “judgment call” would or could be made on an informed basis. Although the Company’s enforcement proceedings are centred in the U.S.,59 the Ad Hoc Committee have not retained U.S. enforcement counsel to advise on Crystallex’s enforcement activities.60 They have not retained OFAC counsel to advise on the impact of the Sanctions on Crystallex’s enforcement activity.61 They have not retained advisors to provide advice concerning the Venezuelan political situation and its impact on Crystallex’s enforcement efforts.62 For his part, Mr. Reid has never been involved in the enforcement of a significant judgment against a foreign sovereign. 63 Moreover, no member of the Ad Hoc Committee has so much as reviewed an unredacted version of

40. The Notes are Unsecured Creditors. The Ad Hoc Committee’s demand to make a “judgment call” regarding disclosure of the Financial Information should be particularly troubling to the Court in circumstances where the Noteholders are unsecured creditors who are currently out of the money.65 41. If the Company is wrong concerning the potential harm to its enforcement efforts of disclosing the Financial Information, the worst-case scenario is that it will be accused of having been overly conservative. If the Company is right, however, the worst-case scenario is that the Noteholders will receive no recoveries in respect of their investments in Crystallex. (c) The Ad Hoc Committee has access to the Historical Financial Information, knows that the Company has no further sources of funds aside from its enforcement efforts, and knows that the Company’s money is only being spent on enforcement activities and in the CCAA proceeding;82 (d) Crystallex’s stakeholders are also well aware that the Company has insufficient cash resources even to pay off the balance owed to the DIP lender, leaving aside the ongoing uncertainty relating to amounts owing to the Canada Revenue Agency,83 and that all of the Company’s efforts and resources (aside from the ones being diverted by the Ad Hoc Committee on

56. For all of the foregoing reasons, the Company respectfully requests that the Financial Information be redacted, and that the Ad Hoc Committee be made to bear the significant expense to the Company of having to pursue this motion – which it has brought for the benefit of all stakeholders – on a contested basis

Does not look good for the Ad Hoc Committee. Tenor is blowing them away with this Public Factum.