I believe one of the the reasons why KRY/Tenor asked for a gag order regarding the agreement is precisely the upfront payment. They need time to sort out the distribution of these funds, specially if the amount is material.

You may remember that KRY obatined two attachment orders on the Nomura bonds (Approx. $700 million) and the Vzla. 2036 bonds ($1.5 billion face value, approx. $500 million market value), which, to this date, KRY has not indicated what thier outcome was. Then there is the payment for the mining data ($300-400 million), about which nothing has been said thus far.

Tenor/Fung are buying time to figure out how to take the maximum advantage of the situation and could even agree to lift the attachment orders if doing this is not in their best interest, because having money to payoff the DIP loan and the bondholders would require KRY coming out of bankruptcy and losing the protection it has afforded them to date.

I am sure Gowlings and the other shareholder lawyers are paying attention, since we all know what is at stake here.