Crystallex $15.43 million additional DIP financing recognized by court

By Kali Hays

New York, April 28 - Crystallex International Corp. obtained U.S. Bankruptcy Court recognition of a second additional financing order under the Companies Creditor's Arrangement Act from the Ontario Superior Court of Justice, according to an April 28 order with the U.S Bankruptcy Court for the District of Delaware.

As previously reported, the Canadian court entered its order on April 14 allowing the company access to additional financing of $15.43 million under an amendment of the company's debtor-in-possession financing from Tenor KRY Coöperatief UA along with an interim advance of $300,000.

The current DIP financing of $47 million will be increased to $62.43 million under the amendment.

Upon asking for court recognition, the company said it intends to use the additional financing in its continued arbitration against the Bolivarian Republic of Venezuela regarding an investment treaty between Canada and Venezuela and has budgeted the funds to carry it through December 2015, according to the motion.

In exchange for the additional financing, Tenor will receive an increased percentage of any proceeds obtained from arbitration.

Crystallex, a mining company based in Toronto, filed a Chapter 15 bankruptcy case on Dec. 23, 2011 with the U.S. Bankruptcy Court for the District of Delaware. The case number is 11-14074.

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