diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/CodegenContext.java b/compiler/backend/src/org/jetbrains/jet/codegen/CodegenContext.java
index 98aee0c5402..34c01e7effc 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/CodegenContext.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/CodegenContext.java
@@ -4,6 +4,7 @@ import org.jetbrains.annotations.NotNull;
 import org.jetbrains.annotations.Nullable;
 import org.jetbrains.jet.lang.descriptors.*;
 import org.jetbrains.jet.lang.descriptors.annotations.AnnotationDescriptor;
+import org.jetbrains.jet.lang.resolve.DescriptorUtils;
 import org.jetbrains.jet.lang.types.JetType;
 import org.objectweb.asm.Type;
 import org.objectweb.asm.commons.InstructionAdapter;
@@ -86,10 +87,11 @@ public abstract class CodegenContext {
     }
 
     public String getNamespaceClassName() {
-        if(parentContext != STATIC)
-            return parentContext.getNamespaceClassName();
-
-        return NamespaceCodegen.getJVMClassName(contextType.getName());
+        DeclarationDescriptor descriptor = contextType;
+        while(!(descriptor instanceof NamespaceDescriptor)) {
+            descriptor = descriptor.getContainingDeclaration();
+        }
+        return NamespaceCodegen.getJVMClassName(DescriptorUtils.getFQName(descriptor));
     }
 
     public OwnerKind getContextKind() {
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java b/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
index db142585742..99539cb3875 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/GenerationState.java
@@ -173,10 +173,10 @@ public class GenerationState {
         final ClassFileFactory factory = getFactory();
         List<String> files = factory.files();
         for (String file : files) {
-            if (!file.startsWith("std/")) {
+//            if (!file.startsWith("std/")) {
                 answer.append("@").append(file).append('\n');
                 answer.append(factory.asText(file));
-            }
+//            }
         }
 
         return answer.toString();
diff --git a/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java b/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java
index 29ec1038894..31bc00c6667 100644
--- a/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java
+++ b/compiler/backend/src/org/jetbrains/jet/codegen/NamespaceCodegen.java
@@ -119,7 +119,7 @@ public class NamespaceCodegen {
 
     private void generateTypeInfoFields(JetFile file, CodegenContext context) {
         if(context.typeInfoConstants != null) {
-            String jvmClassName = getJVMClassName(file.getNamespaceHeader().getName());
+            String jvmClassName = getJVMClassName(JetPsiUtil.getFQName(file));
             for(int index = 0; index != context.typeInfoConstantsCount; index++) {
                 JetType type = context.reverseTypeInfoConstants.get(index);
                 String fieldName = "$typeInfoCache$" + index;
diff --git a/compiler/testData/codegen/regressions/kt864.jet b/compiler/testData/codegen/regressions/kt864.jet
new file mode 100644
index 00000000000..40bdba3dade
--- /dev/null
+++ b/compiler/testData/codegen/regressions/kt864.jet
@@ -0,0 +1,20 @@
+import std.io.*
+import std.util.*
+import java.io.*
+import java.util.*
+
+fun sample() : Reader {
+    return StringReader("""Hello
+World""");
+  }
+
+  fun box() : String {
+    // TODO compiler error
+    // both these expressions causes java.lang.NoClassDefFoundError: collections/namespace
+    val list1 = sample().useLines{it.toArrayList()}
+    val list2 = sample().useLines<ArrayList<String>>{it.toArrayList()}
+
+    if(arrayList("Hello", "World") != list1) return "fail"
+    if(arrayList("Hello", "World") != list2) return "fail"
+    return "OK"
+  }
diff --git a/compiler/tests/org/jetbrains/jet/codegen/StdlibTest.java b/compiler/tests/org/jetbrains/jet/codegen/StdlibTest.java
index 5fe45a47098..af96165738f 100644
--- a/compiler/tests/org/jetbrains/jet/codegen/StdlibTest.java
+++ b/compiler/tests/org/jetbrains/jet/codegen/StdlibTest.java
@@ -76,4 +76,8 @@ public class StdlibTest extends CodegenTestCase {
     public void testKt715 () {
         blackBoxFile("regressions/kt715.kt");
     }
+
+    public void testKt864 () {
+        blackBoxFile("regressions/kt864.jet");
+    }
 }
diff --git a/testlib/test/IoTest.kt b/testlib/test/IoTest.kt
index 6057432243a..5714c8445ff 100644
--- a/testlib/test/IoTest.kt
+++ b/testlib/test/IoTest.kt
@@ -24,14 +24,11 @@ World""");
   }
 
   fun testLineIterator() {
-    /*
-    // TODO compiler error
-    // both these expressions causes java.lang.NoClassDefFoundError: collections/namespace
-    val list = sample().useLines{it.toArrayList()}
-    val list = sample().useLines<ArrayList<String>>{it.toArrayList()}
+    val list1 = sample().useLines{it.toArrayList()}
+    val list2 = sample().useLines<ArrayList<String>>{it.toArrayList()}
 
-    assertEquals(arrayList("Hello", "World"), list)
-    */
+    assertEquals(arrayList("Hello", "World"), list1)
+    assertEquals(arrayList("Hello", "World"), list2)
   }
 
   fun testUse() {