The issue that I see is that the bonds mature on Dec 23, 2011 so the clock is ticking.

Even if the bondholders are kept at bay until then, that is a hard deadline and absent a deal with the bondholders they must be paid.

(I've done some American bankruptcy law, but do not know the Canadian bankruptcy law, so I cannot comment on how that would affect our position relative to the bondholders in a default.)