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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Thoughts on Current CCAA Situation

I don't post as much as I use to because there is really nothing new to say. I respect JC and his posts and don't care of he is a shareholder or not. Sometimes as things evolve we lose sight of how things started.

This is my opinion only:

The current bond holders recognized lond ago that unless something sensible happened regarding VZ, Kry would not be in a position to pay its debt. The bondies made a calculated gamble that they could take over any claim we might have made against VZ if we went to arbitration. This was while they were collecting interest of the notes right up to the last payment. It wouldn't surprise me to find out some bondies might actually be even since they bought the debt at a discount.

Rather than playing fair and allowing Kry to try and get the permit or file for arbitration and wait for their payment of $100 million and remaining interest they chose to take proactive measures to speed up our cash burn. The bondies started legal action against Kry years before the notes were to come due. They did this all the while like no complaining on how much were spending.

The bondies lost every court case but that didn't stop them from working against Kry to force them into bankruptcy. When it became apparent that Kry was preparing to arrange alternate financing to pay off the note holders to avoid filing for CCAA protection the bondies went to court again using the clause Kry couldn't arrange any loans secured over the bondies even though the money would have paid them off. They didn't want their money they want everyone's money.

Tenor decided that to avoid being drawn into the legal action it would be simpler to allow Kry to file for CCAA and present their plan to the monitor and judge. This was done and the Bondies presented their plan. As a back up the bondies said the monitor and court thought Tenor had a better offer they basically wanted the right to take the Tenor deal away from them and use it to stay in the game.

The monitor and judge ruled for Tenor. This gave the bondies only one option left which was to cause huge CCAA costs by fighting Kry on any settlement arrangement. This was the same plan they had before CCAA protection and now they are back at it. Burn as much money as possible to hasten our need for more money all the while complaining about how much money we are burning and not paying the penalty of costs as ordered by the court.

What the bondies are doing is legal and in their right to try and take as much of the company and award as possible. The problem their facing is that the monitor and judge both see their actions for what they are. Pure Greed!!!

Personaly I would rather lose every penny than to give the bondies anything more that principle and interest. If more of the settlement has to be given up so be it but to the bondies.

JJ

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