Crystallex seeks U.S. recognition of Canadian court's financing order

By Jim Witters

Wilmington, Del., June 10 - Crystallex International Corp. is seeking U.S. recognition of orders in the Ontario (Canada) Superior Court of Justice approving $11.1 million additional financing for the debtor and enforcing a "standstill order," according to documents filed June 7 with the U.S. Bankruptcy Court for the District of Delaware.

The Canadian court entered an order on June 5 approving an amendment to the debtor-in-possession financing agreement with Tenor Special Situation Fund I, LLC, which assigned its interests to Tenor KRY Coperatief UA.

Crystallex also is seeking U.S. approval of the Canadian court's standstill order, which "is the result of significant, arm's-length negotiations between the debtor and key constituents in the Canadian proceeding."

The recognition is a condition of the amendment to the DIP agreement approved June 5 in Canada.

The Canadian court is handling the controlling case under the Companies' Creditors Arrangement Act.

No hearing has been scheduled in the U.S. court to consider the two motions.

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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