Wrong, if KRY goes Bankrupt, the Bondholders will the takeover any assets (I.E. the MOC). The current shareholders (us) will get screwed. They will take the thing through ICSID and chop up any settlement amongst themselves.

2 billion chops up nicely when 290mil shares are not in play. If they don’t have the money to follow it through they just issue new shares to fund the arbitration process. This is my biggest concern as I have expressed before. I would suspect the bond holders want KRY to go Bankrupt. The risk reward on a 100mill dollar investment is to good.

The only reason the bondholders would sell to Rusoro is if they need cash now. Rusoro would want to buy KRY debt for the reasons stated above.

Typically the bondholders always win, with GM as an exception. I believe this was the first time a bond was destroyed, a dangerous precedent.