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diff --git a/compiler/closureiters.nim b/compiler/closureiters.nim
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+#
+#
+#           The Nim Compiler
+#        (c) Copyright 2018 Andreas Rumpf
+#
+#    See the file "copying.txt", included in this
+#    distribution, for details about the copyright.
+#
+
+# This file implements closure iterator transformations.
+# The main idea is to split the closure iterator body to top level statements.
+# The body is split by yield statement.
+#
+# Example:
+#  while a > 0:
+#    echo "hi"
+#    yield a
+#    dec a
+#
+# Should be transformed to:
+#  STATE0:
+#    if a > 0:
+#      echo "hi"
+#      :state = 1 # Next state
+#      return a # yield
+#    else:
+#      :state = 2 # Next state
+#      break :stateLoop # Proceed to the next state
+#  STATE1:
+#    dec a
+#    :state = 0 # Next state
+#    break :stateLoop # Proceed to the next state
+#  STATE2:
+#    :state = -1 # End of execution
+
+# The transformation should play well with lambdalifting, however depending
+# on situation, it can be called either before or after lambdalifting
+# transformation. As such we behave slightly differently, when accessing
+# iterator state, or using temp variables. If lambdalifting did not happen,
+# we just create local variables, so that they will be lifted further on.
+# Otherwise, we utilize existing env, created by lambdalifting.
+
+# Lambdalifting treats :state variable specially, it should always end up
+# as the first field in env. Currently C codegen depends on this behavior.
+
+# One special subtransformation is nkStmtListExpr lowering.
+# Example:
+#   template foo(): int =
+#     yield 1
+#     2
+#
+#   iterator it(): int {.closure.} =
+#     if foo() == 2:
+#       yield 3
+#
+# If a nkStmtListExpr has yield inside, it has first to be lowered to:
+#   yield 1
+#   :tmpSlLower = 2
+#   if :tmpSlLower == 2:
+#     yield 3
+
+# nkTryStmt Transformations:
+# If the iter has an nkTryStmt with a yield inside
+#  - the closure iter is promoted to have exceptions (ctx.hasExceptions = true)
+#  - exception table is created. This is a const array, where
+#    `abs(exceptionTable[i])` is a state idx to which we should jump from state
+#    `i` should exception be raised in state `i`. For all states in `try` block
+#    the target state is `except` block. For all states in `except` block
+#    the target state is `finally` block. For all other states there is no
+#    target state (0, as the first block can never be neither except nor finally).
+#    `exceptionTable[i]` is < 0 if `abs(exceptionTable[i])` is except block,
+#    and > 0, for finally block.
+#  - local variable :curExc is created
+#  - the iter body is wrapped into a
+#      try:
+#       closureIterSetupExc(:curExc)
+#       ...body...
+#      catch:
+#        :state = exceptionTable[:state]
+#        if :state == 0: raise # No state that could handle exception
+#        :unrollFinally = :state > 0 # Target state is finally
+#        if :state < 0:
+#           :state = -:state
+#        :curExc = getCurrentException()
+#
+# nkReturnStmt within a try/except/finally now has to behave differently as we
+# want the nearest finally block to be executed before the return, thus it is
+# transformed to:
+#  :tmpResult = returnValue (if return doesn't have a value, this is skipped)
+#  :unrollFinally = true
+#  goto nearestFinally (or -1 if not exists)
+#
+# Every finally block calls closureIterEndFinally() upon its successful
+# completion.
+#
+# Example:
+#
+# try:
+#  yield 0
+#  raise ...
+# except:
+#  yield 1
+#  return 3
+# finally:
+#  yield 2
+#
+# Is transformed to (yields are left in place for example simplicity,
+#    in reality the code is subdivided even more, as described above):
+#
+# STATE0: # Try
+#   yield 0
+#   raise ...
+#   :state = 2 # What would happen should we not raise
+#   break :stateLoop
+# STATE1: # Except
+#   yield 1
+#   :tmpResult = 3           # Return
+#   :unrollFinally = true # Return
+#   :state = 2 # Goto Finally
+#   break :stateLoop
+#   :state = 2 # What would happen should we not return
+#   break :stateLoop
+# STATE2: # Finally
+#   yield 2
+#   if :unrollFinally: # This node is created by `newEndFinallyNode`
+#     if :curExc.isNil:
+#       return :tmpResult
+#     else:
+#       raise
+#   state = -1 # Goto next state. In this case we just exit
+#   break :stateLoop
+
+import
+  intsets, strutils, options, ast, astalgo, trees, treetab, msgs, idents,
+  renderer, types, magicsys, rodread, lowerings, lambdalifting, modulegraphs
+
+type
+  Ctx = object
+    g: ModuleGraph
+    fn: PSym
+    stateVarSym: PSym # :state variable. nil if env already introduced by lambdalifting
+    tmpResultSym: PSym # Used when we return, but finally has to interfere
+    unrollFinallySym: PSym # Indicates that we're unrolling finally states (either exception happened or premature return)
+    curExcSym: PSym # Current exception
+
+    states: seq[PNode] # The resulting states. Every state is an nkState node.
+    blockLevel: int # Temp used to transform break and continue stmts
+    stateLoopLabel: PSym # Label to break on, when jumping between states.
+    exitStateIdx: int # index of the last state
+    tempVarId: int # unique name counter
+    tempVars: PNode # Temp var decls, nkVarSection
+    exceptionTable: seq[int] # For state `i` jump to state `exceptionTable[i]` if exception is raised
+    hasExceptions: bool # Does closure have yield in try?
+    curExcHandlingState: int # Negative for except, positive for finally
+    nearestFinally: int # Index of the nearest finally block. For try/except it
+                    # is their finally. For finally it is parent finally. Otherwise -1
+
+proc newStateAccess(ctx: var Ctx): PNode =
+  if ctx.stateVarSym.isNil:
+    result = rawIndirectAccess(newSymNode(getEnvParam(ctx.fn)),
+        getStateField(ctx.g, ctx.fn), ctx.fn.info)
+  else:
+    result = newSymNode(ctx.stateVarSym)
+
+proc newStateAssgn(ctx: var Ctx, toValue: PNode): PNode =
+  # Creates state assignment:
+  #   :state = toValue
+  newTree(nkAsgn, ctx.newStateAccess(), toValue)
+
+proc newStateAssgn(ctx: var Ctx, stateNo: int = -2): PNode =
+  # Creates state assignment:
+  #   :state = stateNo
+  ctx.newStateAssgn(newIntTypeNode(nkIntLit, stateNo, ctx.g.getSysType(TLineInfo(), tyInt)))
+
+proc newEnvVar(ctx: var Ctx, name: string, typ: PType): PSym =
+  result = newSym(skVar, getIdent(name), ctx.fn, ctx.fn.info)
+  result.typ = typ
+  assert(not typ.isNil)
+
+  if not ctx.stateVarSym.isNil:
+    # We haven't gone through labmda lifting yet, so just create a local var,
+    # it will be lifted later
+    if ctx.tempVars.isNil:
+      ctx.tempVars = newNodeI(nkVarSection, ctx.fn.info)
+      addVar(ctx.tempVars, newSymNode(result))
+  else:
+    let envParam = getEnvParam(ctx.fn)
+    # let obj = envParam.typ.lastSon
+    result = addUniqueField(envParam.typ.lastSon, result)
+
+proc newEnvVarAccess(ctx: Ctx, s: PSym): PNode =
+  if ctx.stateVarSym.isNil:
+    result = rawIndirectAccess(newSymNode(getEnvParam(ctx.fn)), s, ctx.fn.info)
+  else:
+    result = newSymNode(s)
+
+proc newTmpResultAccess(ctx: var Ctx): PNode =
+  if ctx.tmpResultSym.isNil:
+    ctx.tmpResultSym = ctx.newEnvVar(":tmpResult", ctx.fn.typ[0])
+  ctx.newEnvVarAccess(ctx.tmpResultSym)
+
+proc newUnrollFinallyAccess(ctx: var Ctx, info: TLineInfo): PNode =
+  if ctx.unrollFinallySym.isNil:
+    ctx.unrollFinallySym = ctx.newEnvVar(":unrollFinally", ctx.g.getSysType(info, tyBool))
+  ctx.newEnvVarAccess(ctx.unrollFinallySym)
+
+proc newCurExcAccess(ctx: var Ctx): PNode =
+  if ctx.curExcSym.isNil:
+    ctx.curExcSym = ctx.newEnvVar(":curExc", ctx.g.callCodegenProc("getCurrentException", emptyNode).typ)
+  ctx.newEnvVarAccess(ctx.curExcSym)
+
+proc newState(ctx: var Ctx, n, gotoOut: PNode): int =
+  # Creates a new state, adds it to the context fills out `gotoOut` so that it
+  # will goto this state.
+  # Returns index of the newly created state
+
+  result = ctx.states.len
+  let resLit = ctx.g.newIntLit(n.info, result)
+  let s = newNodeI(nkState, n.info)
+  s.add(resLit)
+  s.add(n)
+  ctx.states.add(s)
+  ctx.exceptionTable.add(ctx.curExcHandlingState)
+
+  if not gotoOut.isNil:
+    assert(gotoOut.len == 0)
+    gotoOut.add(ctx.g.newIntLit(gotoOut.info, result))
+
+proc toStmtList(n: PNode): PNode =
+  result = n
+  if result.kind notin {nkStmtList, nkStmtListExpr}:
+    result = newNodeI(nkStmtList, n.info)
+    result.add(n)
+
+proc addGotoOut(n: PNode, gotoOut: PNode): PNode =
+  # Make sure `n` is a stmtlist, and ends with `gotoOut`
+  result = toStmtList(n)
+  if result.len != 0 and result.sons[^1].kind != nkGotoState:
+    result.add(gotoOut)
+
+proc newTempVar(ctx: var Ctx, typ: PType): PSym =
+  result = ctx.newEnvVar(":tmpSlLower" & $ctx.tempVarId, typ)
+  inc ctx.tempVarId
+
+proc hasYields(n: PNode): bool =
+  # TODO: This is very inefficient. It traverses the node, looking for nkYieldStmt.
+  case n.kind
+  of nkYieldStmt:
+    result = true
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+  else:
+    for c in n:
+      if c.hasYields:
+        result = true
+        break
+
+proc transformBreaksAndContinuesInWhile(ctx: var Ctx, n: PNode, before, after: PNode): PNode =
+  result = n
+  case n.kind
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+  of nkWhileStmt: discard # Do not recurse into nested whiles
+  of nkContinueStmt:
+    result = before
+  of nkBlockStmt:
+    inc ctx.blockLevel
+    result[1] = ctx.transformBreaksAndContinuesInWhile(result[1], before, after)
+    dec ctx.blockLevel
+  of nkBreakStmt:
+    if ctx.blockLevel == 0:
+      result = after
+  else:
+    for i in 0 ..< n.len:
+      n[i] = ctx.transformBreaksAndContinuesInWhile(n[i], before, after)
+
+proc transformBreaksInBlock(ctx: var Ctx, n: PNode, label, after: PNode): PNode =
+  result = n
+  case n.kind
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+  of nkBlockStmt, nkWhileStmt:
+    inc ctx.blockLevel
+    result[1] = ctx.transformBreaksInBlock(result[1], label, after)
+    dec ctx.blockLevel
+  of nkBreakStmt:
+    if n[0].kind == nkEmpty:
+      if ctx.blockLevel == 0:
+        result = after
+    else:
+      if label.kind == nkSym and n[0].sym == label.sym:
+        result = after
+  else:
+    for i in 0 ..< n.len:
+      n[i] = ctx.transformBreaksInBlock(n[i], label, after)
+
+proc newNullifyCurExc(ctx: var Ctx, info: TLineInfo): PNode =
+  # :curEcx = nil
+  let curExc = ctx.newCurExcAccess()
+  curExc.info = info
+  let nilnode = newNode(nkNilLit)
+  nilnode.typ = curExc.typ
+  result = newTree(nkAsgn, curExc, nilnode)
+
+proc newOr(g: ModuleGraph, a, b: PNode): PNode {.inline.} =
+  result = newTree(nkCall, newSymNode(g.getSysMagic(a.info, "or", mOr)), a, b)
+  result.typ = g.getSysType(a.info, tyBool)
+  result.info = a.info
+
+proc collectExceptState(ctx: var Ctx, n: PNode): PNode {.inline.} =
+  var ifStmt = newNodeI(nkIfStmt, n.info)
+  let g = ctx.g
+  for c in n:
+    if c.kind == nkExceptBranch:
+      var ifBranch: PNode
+
+      if c.len > 1:
+        var cond: PNode
+        for i in 0 .. c.len - 2:
+          assert(c[i].kind == nkType)
+          let nextCond = newTree(nkCall,
+            newSymNode(g.getSysMagic(c.info, "of", mOf)),
+            g.callCodegenProc("getCurrentException", emptyNode),
+            c[i])
+          nextCond.typ = ctx.g.getSysType(c.info, tyBool)
+          nextCond.info = c.info
+
+          if cond.isNil:
+            cond = nextCond
+          else:
+            cond = g.newOr(cond, nextCond)
+
+        ifBranch = newNodeI(nkElifBranch, c.info)
+        ifBranch.add(cond)
+      else:
+        if ifStmt.len == 0:
+          ifStmt = newNodeI(nkStmtList, c.info)
+          ifBranch = newNodeI(nkStmtList, c.info)
+        else:
+          ifBranch = newNodeI(nkElse, c.info)
+
+      ifBranch.add(c[^1])
+      ifStmt.add(ifBranch)
+
+  if ifStmt.len != 0:
+    result = newTree(nkStmtList, ctx.newNullifyCurExc(n.info), ifStmt)
+  else:
+    result = emptyNode
+
+proc addElseToExcept(ctx: var Ctx, n: PNode) =
+  if n.kind == nkStmtList and n[1].kind == nkIfStmt and n[1][^1].kind != nkElse:
+    # Not all cases are covered
+    let branchBody = newNodeI(nkStmtList, n.info)
+
+    block: # :unrollFinally = true
+      branchBody.add(newTree(nkAsgn,
+        ctx.newUnrollFinallyAccess(n.info),
+        newIntTypeNode(nkIntLit, 1, ctx.g.getSysType(n.info, tyBool))))
+
+    block: # :curExc = getCurrentException()
+      branchBody.add(newTree(nkAsgn,
+        ctx.newCurExcAccess(),
+        ctx.g.callCodegenProc("getCurrentException", emptyNode)))
+
+    block: # goto nearestFinally
+      branchBody.add(newTree(nkGotoState, ctx.g.newIntLit(n.info, ctx.nearestFinally)))
+
+    let elseBranch = newTree(nkElse, branchBody)
+    n[1].add(elseBranch)
+
+proc getFinallyNode(n: PNode): PNode =
+  result = n[^1]
+  if result.kind == nkFinally:
+    result = result[0]
+  else:
+    result = emptyNode
+
+proc hasYieldsInExpressions(n: PNode): bool =
+  case n.kind
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+  of nkStmtListExpr:
+    if isEmptyType(n.typ):
+      for c in n:
+        if c.hasYieldsInExpressions:
+          return true
+    else:
+      result = n.hasYields
+  else:
+    for c in n:
+      if c.hasYieldsInExpressions:
+        return true
+
+proc exprToStmtList(n: PNode): tuple[s, res: PNode] =
+  assert(n.kind == nkStmtListExpr)
+
+  var parent = n
+  var lastSon = n[^1]
+
+  while lastSon.kind == nkStmtListExpr:
+    parent = lastSon
+    lastSon = lastSon[^1]
+
+  result.s = newNodeI(nkStmtList, n.info)
+  result.s.sons = parent.sons
+  result.s.sons.setLen(result.s.sons.len - 1) # delete last son
+  result.res = lastSon
+
+proc newEnvVarAsgn(ctx: Ctx, s: PSym, v: PNode): PNode =
+  result = newTree(nkFastAsgn, ctx.newEnvVarAccess(s), v)
+  result.info = v.info
+
+proc addExprAssgn(ctx: Ctx, output, input: PNode, sym: PSym) =
+  if input.kind == nkStmtListExpr:
+    let (st, res) = exprToStmtList(input)
+    output.add(st)
+    output.add(ctx.newEnvVarAsgn(sym, res))
+  else:
+    output.add(ctx.newEnvVarAsgn(sym, input))
+
+proc convertExprBodyToAsgn(ctx: Ctx, exprBody: PNode, res: PSym): PNode =
+  result = newNodeI(nkStmtList, exprBody.info)
+  ctx.addExprAssgn(result, exprBody, res)
+
+proc newNotCall(g: ModuleGraph; e: PNode): PNode =
+  result = newTree(nkCall, newSymNode(g.getSysMagic(e.info, "not", mNot), e.info), e)
+  result.typ = g.getSysType(e.info, tyBool)
+
+proc lowerStmtListExprs(ctx: var Ctx, n: PNode, needsSplit: var bool): PNode =
+  result = n
+  case n.kind
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+
+  of nkYieldStmt:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      assert(n[0].kind == nkStmtListExpr)
+      result = newNodeI(nkStmtList, n.info)
+      let (st, ex) = exprToStmtList(n[0])
+      result.add(st)
+      n[0] = ex
+      result.add(n)
+
+    needsSplit = true
+
+  of nkPar, nkObjConstr, nkTupleConstr, nkBracket:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+
+      result = newNodeI(nkStmtListExpr, n.info)
+      if n.typ.isNil: internalError(ctx.g.config, "lowerStmtListExprs: constr typ.isNil")
+      result.typ = n.typ
+
+      for i in 0 ..< n.len:
+        if n[i].kind == nkStmtListExpr:
+          let (st, ex) = exprToStmtList(n[i])
+          result.add(st)
+          n[i] = ex
+      result.add(n)
+
+  of nkIfStmt, nkIfExpr:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+      var tmp: PSym
+      var s: PNode
+      let isExpr = not isEmptyType(n.typ)
+      if isExpr:
+        tmp = ctx.newTempVar(n.typ)
+        result = newNodeI(nkStmtListExpr, n.info)
+        result.typ = n.typ
+      else:
+        result = newNodeI(nkStmtList, n.info)
+
+      var curS = result
+
+      for branch in n:
+        case branch.kind
+        of nkElseExpr, nkElse:
+          if isExpr:
+            let branchBody = newNodeI(nkStmtList, branch.info)
+            ctx.addExprAssgn(branchBody, branch[0], tmp)
+            let newBranch = newTree(nkElse, branchBody)
+            curS.add(newBranch)
+          else:
+            curS.add(branch)
+
+        of nkElifExpr, nkElifBranch:
+          var newBranch: PNode
+          if branch[0].kind == nkStmtListExpr:
+            let (st, res) = exprToStmtList(branch[0])
+            let elseBody = newTree(nkStmtList, st)
+
+            newBranch = newTree(nkElifBranch, res, branch[1])
+
+            let newIf = newTree(nkIfStmt, newBranch)
+            elseBody.add(newIf)
+            if curS.kind == nkIfStmt:
+              let newElse = newNodeI(nkElse, branch.info)
+              newElse.add(elseBody)
+              curS.add(newElse)
+            else:
+              curS.add(elseBody)
+            curS = newIf
+          else:
+            newBranch = branch
+            if curS.kind == nkIfStmt:
+              curS.add(newBranch)
+            else:
+              let newIf = newTree(nkIfStmt, newBranch)
+              curS.add(newIf)
+              curS = newIf
+
+          if isExpr:
+            let branchBody = newNodeI(nkStmtList, branch[1].info)
+            ctx.addExprAssgn(branchBody, branch[1], tmp)
+            newBranch[1] = branchBody
+
+        else:
+          internalError(ctx.g.config, "lowerStmtListExpr(nkIf): " & $branch.kind)
+
+      if isExpr: result.add(ctx.newEnvVarAccess(tmp))
+
+  of nkTryStmt:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+      let isExpr = not isEmptyType(n.typ)
+
+      if isExpr:
+        result = newNodeI(nkStmtListExpr, n.info)
+        result.typ = n.typ
+        let tmp = ctx.newTempVar(n.typ)
+
+        n[0] = ctx.convertExprBodyToAsgn(n[0], tmp)
+        for i in 1 ..< n.len:
+          let branch = n[i]
+          case branch.kind
+          of nkExceptBranch:
+            if branch[0].kind == nkType:
+              branch[1] = ctx.convertExprBodyToAsgn(branch[1], tmp)
+            else:
+              branch[0] = ctx.convertExprBodyToAsgn(branch[0], tmp)
+          of nkFinally:
+            discard
+          else:
+            internalError(ctx.g.config, "lowerStmtListExpr(nkTryStmt): " & $branch.kind)
+        result.add(n)
+        result.add(ctx.newEnvVarAccess(tmp))
+
+  of nkCaseStmt:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+
+      let isExpr = not isEmptyType(n.typ)
+
+      if isExpr:
+        let tmp = ctx.newTempVar(n.typ)
+        result = newNodeI(nkStmtListExpr, n.info)
+        result.typ = n.typ
+
+        if n[0].kind == nkStmtListExpr:
+          let (st, ex) = exprToStmtList(n[0])
+          result.add(st)
+          n[0] = ex
+
+        for i in 1 ..< n.len:
+          let branch = n[i]
+          case branch.kind
+          of nkOfBranch:
+            branch[1] = ctx.convertExprBodyToAsgn(branch[1], tmp)
+          of nkElse:
+            branch[0] = ctx.convertExprBodyToAsgn(branch[0], tmp)
+          else:
+            internalError(ctx.g.config, "lowerStmtListExpr(nkCaseStmt): " & $branch.kind)
+        result.add(n)
+        result.add(ctx.newEnvVarAccess(tmp))
+
+  of nkCallKinds:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+      let isExpr = not isEmptyType(n.typ)
+
+      if isExpr:
+        result = newNodeI(nkStmtListExpr, n.info)
+        result.typ = n.typ
+      else:
+        result = newNodeI(nkStmtList, n.info)
+
+      if n[0].kind == nkSym and n[0].sym.magic in {mAnd, mOr}: # `and`/`or` short cirquiting
+        var cond = n[1]
+        if cond.kind == nkStmtListExpr:
+          let (st, ex) = exprToStmtList(cond)
+          result.add(st)
+          cond = ex
+
+        let tmp = ctx.newTempVar(cond.typ)
+        result.add(ctx.newEnvVarAsgn(tmp, cond))
+
+        var check = ctx.newEnvVarAccess(tmp)
+        if n[0].sym.magic == mOr:
+          check = ctx.g.newNotCall(check)
+
+        cond = n[2]
+        let ifBody = newNodeI(nkStmtList, cond.info)
+        if cond.kind == nkStmtListExpr:
+          let (st, ex) = exprToStmtList(cond)
+          ifBody.add(st)
+          cond = ex
+        ifBody.add(ctx.newEnvVarAsgn(tmp, cond))
+
+        let ifBranch = newTree(nkElifBranch, check, ifBody)
+        let ifNode = newTree(nkIfStmt, ifBranch)
+        result.add(ifNode)
+        result.add(ctx.newEnvVarAccess(tmp))
+      else:
+        for i in 0 ..< n.len:
+          if n[i].kind == nkStmtListExpr:
+            let (st, ex) = exprToStmtList(n[i])
+            result.add(st)
+            n[i] = ex
+
+          if n[i].kind in nkCallKinds: # XXX: This should better be some sort of side effect tracking
+            let tmp = ctx.newTempVar(n[i].typ)
+            result.add(ctx.newEnvVarAsgn(tmp, n[i]))
+            n[i] = ctx.newEnvVarAccess(tmp)
+
+        result.add(n)
+
+  of nkVarSection, nkLetSection:
+    result = newNodeI(nkStmtList, n.info)
+    for c in n:
+      let varSect = newNodeI(n.kind, n.info)
+      varSect.add(c)
+      var ns = false
+      c[^1] = ctx.lowerStmtListExprs(c[^1], ns)
+      if ns:
+        needsSplit = true
+        assert(c[^1].kind == nkStmtListExpr)
+        let (st, ex) = exprToStmtList(c[^1])
+        result.add(st)
+        c[^1] = ex
+      result.add(varSect)
+
+  of nkDiscardStmt, nkReturnStmt, nkRaiseStmt:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+      result = newNodeI(nkStmtList, n.info)
+      let (st, ex) = exprToStmtList(n[0])
+      result.add(st)
+      n[0] = ex
+      result.add(n)
+
+  of nkCast, nkHiddenStdConv, nkHiddenSubConv, nkConv:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+      result = newNodeI(nkStmtListExpr, n.info)
+      result.typ = n.typ
+      let (st, ex) = exprToStmtList(n[1])
+      result.add(st)
+      n[1] = ex
+      result.add(n)
+
+  of nkAsgn, nkFastAsgn:
+    var ns = false
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+    if ns:
+      needsSplit = true
+      result = newNodeI(nkStmtList, n.info)
+      if n[0].kind == nkStmtListExpr:
+        let (st, ex) = exprToStmtList(n[0])
+        result.add(st)
+        n[0] = ex
+
+      if n[1].kind == nkStmtListExpr:
+        let (st, ex) = exprToStmtList(n[1])
+        result.add(st)
+        n[1] = ex
+
+      result.add(n)
+
+  of nkWhileStmt:
+    var ns = false
+
+    var condNeedsSplit = false
+    n[0] = ctx.lowerStmtListExprs(n[0], condNeedsSplit)
+    var bodyNeedsSplit = false
+    n[1] = ctx.lowerStmtListExprs(n[1], bodyNeedsSplit)
+
+    if condNeedsSplit or bodyNeedsSplit:
+      needsSplit = true
+
+      if condNeedsSplit:
+        let (st, ex) = exprToStmtList(n[0])
+        let brk = newTree(nkBreakStmt, emptyNode)
+        let branch = newTree(nkElifBranch, ctx.g.newNotCall(ex), brk)
+        let check = newTree(nkIfStmt, branch)
+        let newBody = newTree(nkStmtList, st, check, n[1])
+
+        n[0] = newSymNode(ctx.g.getSysSym(n[0].info, "true"))
+        n[1] = newBody
+  else:
+    for i in 0 ..< n.len:
+      n[i] = ctx.lowerStmtListExprs(n[i], needsSplit)
+
+proc newEndFinallyNode(ctx: var Ctx, info: TLineInfo): PNode =
+  # Generate the following code:
+  #   if :unrollFinally:
+  #       if :curExc.isNil:
+  #         return :tmpResult
+  #       else:
+  #         raise
+  let curExc = ctx.newCurExcAccess()
+  let nilnode = newNode(nkNilLit)
+  nilnode.typ = curExc.typ
+  let cmp = newTree(nkCall, newSymNode(ctx.g.getSysMagic(info, "==", mEqRef), info), curExc, nilnode)
+  cmp.typ = ctx.g.getSysType(info, tyBool)
+
+  let asgn = newTree(nkFastAsgn,
+    newSymNode(getClosureIterResult(ctx.fn), info),
+    ctx.newTmpResultAccess())
+
+  let retStmt = newTree(nkReturnStmt, asgn)
+  let branch = newTree(nkElifBranch, cmp, retStmt)
+
+  # The C++ backend requires `getCurrentException` here.
+  let raiseStmt = newTree(nkRaiseStmt, ctx.g.callCodegenProc("getCurrentException", emptyNode))
+  raiseStmt.info = info
+  let elseBranch = newTree(nkElse, raiseStmt)
+
+  let ifBody = newTree(nkIfStmt, branch, elseBranch)
+  let elifBranch = newTree(nkElifBranch, ctx.newUnrollFinallyAccess(info), ifBody)
+  elifBranch.info = info
+  result = newTree(nkIfStmt, elifBranch)
+
+proc transformReturnsInTry(ctx: var Ctx, n: PNode): PNode =
+  result = n
+  # TODO: This is very inefficient. It traverses the node, looking for nkYieldStmt.
+  case n.kind
+  of nkReturnStmt:
+    # We're somewhere in try, transform to finally unrolling
+    assert(ctx.nearestFinally != 0)
+
+    result = newNodeI(nkStmtList, n.info)
+
+    block: # :unrollFinally = true
+      let asgn = newNodeI(nkAsgn, n.info)
+      asgn.add(ctx.newUnrollFinallyAccess(n.info))
+      asgn.add(newIntTypeNode(nkIntLit, 1, ctx.g.getSysType(n.info, tyBool)))
+      result.add(asgn)
+
+    if n[0].kind != nkEmpty:
+      let asgnTmpResult = newNodeI(nkAsgn, n.info)
+      asgnTmpResult.add(ctx.newTmpResultAccess())
+      asgnTmpResult.add(n[0])
+      result.add(asgnTmpResult)
+
+    result.add(ctx.newNullifyCurExc(n.info))
+
+    let goto = newTree(nkGotoState, ctx.g.newIntLit(n.info, ctx.nearestFinally))
+    result.add(goto)
+
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+  else:
+    for i in 0 ..< n.len:
+      n[i] = ctx.transformReturnsInTry(n[i])
+
+proc transformClosureIteratorBody(ctx: var Ctx, n: PNode, gotoOut: PNode): PNode =
+  result = n
+  case n.kind:
+    of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+        nkSym, nkIdent, procDefs, nkTemplateDef:
+      discard
+
+    of nkStmtList, nkStmtListExpr:
+      assert(isEmptyType(n.typ), "nkStmtListExpr not lowered")
+
+      result = addGotoOut(result, gotoOut)
+      for i in 0 ..< n.len:
+        if n[i].hasYieldsInExpressions:
+          # Lower nkStmtListExpr nodes inside `n[i]` first
+          var ns = false
+          n[i] = ctx.lowerStmtListExprs(n[i], ns)
+
+        if n[i].hasYields:
+          # Create a new split
+          let go = newNodeI(nkGotoState, n[i].info)
+          n[i] = ctx.transformClosureIteratorBody(n[i], go)
+
+          let s = newNodeI(nkStmtList, n[i + 1].info)
+          for j in i + 1 ..< n.len:
+            s.add(n[j])
+
+          n.sons.setLen(i + 1)
+          discard ctx.newState(s, go)
+          if ctx.transformClosureIteratorBody(s, gotoOut) != s:
+            internalError(ctx.g.config, "transformClosureIteratorBody != s")
+          break
+
+    of nkYieldStmt:
+      result = newNodeI(nkStmtList, n.info)
+      result.add(n)
+      result.add(gotoOut)
+
+    of nkElse, nkElseExpr:
+      result[0] = addGotoOut(result[0], gotoOut)
+      result[0] = ctx.transformClosureIteratorBody(result[0], gotoOut)
+
+    of nkElifBranch, nkElifExpr, nkOfBranch:
+      result[1] = addGotoOut(result[1], gotoOut)
+      result[1] = ctx.transformClosureIteratorBody(result[1], gotoOut)
+
+    of nkIfStmt, nkCaseStmt:
+      for i in 0 ..< n.len:
+        n[i] = ctx.transformClosureIteratorBody(n[i], gotoOut)
+      if n[^1].kind != nkElse:
+        # We don't have an else branch, but every possible branch has to end with
+        # gotoOut, so add else here.
+        let elseBranch = newTree(nkElse, gotoOut)
+        n.add(elseBranch)
+
+    of nkWhileStmt:
+      # while e:
+      #   s
+      # ->
+      # BEGIN_STATE:
+      #   if e:
+      #     s
+      #     goto BEGIN_STATE
+      #   else:
+      #     goto OUT
+
+      result = newNodeI(nkGotoState, n.info)
+
+      let s = newNodeI(nkStmtList, n.info)
+      discard ctx.newState(s, result)
+      let ifNode = newNodeI(nkIfStmt, n.info)
+      let elifBranch = newNodeI(nkElifBranch, n.info)
+      elifBranch.add(n[0])
+
+      var body = addGotoOut(n[1], result)
+
+      body = ctx.transformBreaksAndContinuesInWhile(body, result, gotoOut)
+      body = ctx.transformClosureIteratorBody(body, result)
+
+      elifBranch.add(body)
+      ifNode.add(elifBranch)
+
+      let elseBranch = newTree(nkElse, gotoOut)
+      ifNode.add(elseBranch)
+      s.add(ifNode)
+
+    of nkBlockStmt:
+      result[1] = addGotoOut(result[1], gotoOut)
+      result[1] = ctx.transformBreaksInBlock(result[1], result[0], gotoOut)
+      result[1] = ctx.transformClosureIteratorBody(result[1], gotoOut)
+
+    of nkTryStmt:
+      # See explanation above about how this works
+      ctx.hasExceptions = true
+
+      result = newNodeI(nkGotoState, n.info)
+      var tryBody = toStmtList(n[0])
+      var exceptBody = ctx.collectExceptState(n)
+      var finallyBody = newTree(nkStmtList, getFinallyNode(n))
+      finallyBody = ctx.transformReturnsInTry(finallyBody)
+      finallyBody.add(ctx.newEndFinallyNode(finallyBody.info))
+
+      # The following index calculation is based on the knowledge how state
+      # indexes are assigned
+      let tryIdx = ctx.states.len
+      var exceptIdx, finallyIdx: int
+      if exceptBody.kind != nkEmpty:
+        exceptIdx = -(tryIdx + 1)
+        finallyIdx = tryIdx + 2
+      else:
+        exceptIdx = tryIdx + 1
+        finallyIdx = tryIdx + 1
+
+      let outToFinally = newNodeI(nkGotoState, finallyBody.info)
+
+      block: # Create initial states.
+        let oldExcHandlingState = ctx.curExcHandlingState
+        ctx.curExcHandlingState = exceptIdx
+        let realTryIdx = ctx.newState(tryBody, result)
+        assert(realTryIdx == tryIdx)
+
+        if exceptBody.kind != nkEmpty:
+          ctx.curExcHandlingState = finallyIdx
+          let realExceptIdx = ctx.newState(exceptBody, nil)
+          assert(realExceptIdx == -exceptIdx)
+
+        ctx.curExcHandlingState = oldExcHandlingState
+        let realFinallyIdx = ctx.newState(finallyBody, outToFinally)
+        assert(realFinallyIdx == finallyIdx)
+
+      block: # Subdivide the states
+        let oldNearestFinally = ctx.nearestFinally
+        ctx.nearestFinally = finallyIdx
+
+        let oldExcHandlingState = ctx.curExcHandlingState
+
+        ctx.curExcHandlingState = exceptIdx
+
+        if ctx.transformReturnsInTry(tryBody) != tryBody:
+          internalError(ctx.g.config, "transformReturnsInTry != tryBody")
+        if ctx.transformClosureIteratorBody(tryBody, outToFinally) != tryBody:
+          internalError(ctx.g.config, "transformClosureIteratorBody != tryBody")
+
+        ctx.curExcHandlingState = finallyIdx
+        ctx.addElseToExcept(exceptBody)
+        if ctx.transformReturnsInTry(exceptBody) != exceptBody:
+          internalError(ctx.g.config, "transformReturnsInTry != exceptBody")
+        if ctx.transformClosureIteratorBody(exceptBody, outToFinally) != exceptBody:
+          internalError(ctx.g.config, "transformClosureIteratorBody != exceptBody")
+
+        ctx.curExcHandlingState = oldExcHandlingState
+        ctx.nearestFinally = oldNearestFinally
+        if ctx.transformClosureIteratorBody(finallyBody, gotoOut) != finallyBody:
+          internalError(ctx.g.config, "transformClosureIteratorBody != finallyBody")
+
+    of nkGotoState, nkForStmt:
+      internalError(ctx.g.config, "closure iter " & $n.kind)
+
+    else:
+      for i in 0 ..< n.len:
+        n[i] = ctx.transformClosureIteratorBody(n[i], gotoOut)
+
+proc stateFromGotoState(n: PNode): int =
+  assert(n.kind == nkGotoState)
+  result = n[0].intVal.int
+
+proc tranformStateAssignments(ctx: var Ctx, n: PNode): PNode =
+  # This transforms 3 patterns:
+  ########################## 1
+  # yield e
+  # goto STATE
+  # ->
+  # :state = STATE
+  # return e
+  ########################## 2
+  # goto STATE
+  # ->
+  # :state = STATE
+  # break :stateLoop
+  ########################## 3
+  # return e
+  # ->
+  # :state = -1
+  # return e
+  #
+  result = n
+  case n.kind
+  of nkStmtList, nkStmtListExpr:
+    if n.len != 0 and n[0].kind == nkYieldStmt:
+      assert(n.len == 2)
+      assert(n[1].kind == nkGotoState)
+
+      result = newNodeI(nkStmtList, n.info)
+      result.add(ctx.newStateAssgn(stateFromGotoState(n[1])))
+
+      var retStmt = newNodeI(nkReturnStmt, n.info)
+      if n[0].sons[0].kind != nkEmpty:
+        var a = newNodeI(nkAsgn, n[0].sons[0].info)
+        var retVal = n[0].sons[0] #liftCapturedVars(n.sons[0], owner, d, c)
+        addSon(a, newSymNode(getClosureIterResult(ctx.fn)))
+        addSon(a, retVal)
+        retStmt.add(a)
+      else:
+        retStmt.add(emptyNode)
+
+      result.add(retStmt)
+    else:
+      for i in 0 ..< n.len:
+        n[i] = ctx.tranformStateAssignments(n[i])
+
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+
+  of nkReturnStmt:
+    result = newNodeI(nkStmtList, n.info)
+    result.add(ctx.newStateAssgn(-1))
+    result.add(n)
+
+  of nkGotoState:
+    result = newNodeI(nkStmtList, n.info)
+    result.add(ctx.newStateAssgn(stateFromGotoState(n)))
+
+    let breakState = newNodeI(nkBreakStmt, n.info)
+    breakState.add(newSymNode(ctx.stateLoopLabel))
+    result.add(breakState)
+
+  else:
+    for i in 0 ..< n.len:
+      n[i] = ctx.tranformStateAssignments(n[i])
+
+proc skipStmtList(n: PNode): PNode =
+  result = n
+  while result.kind in {nkStmtList}:
+    if result.len == 0: return emptyNode
+    result = result[0]
+
+proc skipEmptyStates(ctx: Ctx, stateIdx: int): int =
+  # Returns first non-empty state idx for `stateIdx`. Returns `stateIdx` if
+  # it is not empty
+  var maxJumps = ctx.states.len # maxJumps used only for debugging purposes.
+  var stateIdx = stateIdx
+  while true:
+    let label = stateIdx
+    if label == ctx.exitStateIdx: break
+    var newLabel = label
+    if label == -1:
+      newLabel = ctx.exitStateIdx
+    else:
+      let fs = ctx.states[label][1].skipStmtList()
+      if fs.kind == nkGotoState:
+        newLabel = fs[0].intVal.int
+    if label == newLabel: break
+    stateIdx = newLabel
+    dec maxJumps
+    if maxJumps == 0:
+      assert(false, "Internal error")
+
+  result = ctx.states[stateIdx][0].intVal.int
+
+proc skipThroughEmptyStates(ctx: var Ctx, n: PNode): PNode =
+  result = n
+  case n.kind
+  of nkCharLit..nkUInt64Lit, nkFloatLit..nkFloat128Lit, nkStrLit..nkTripleStrLit,
+      nkSym, nkIdent, procDefs, nkTemplateDef:
+    discard
+  of nkGotoState:
+    result = copyTree(n)
+    result[0].intVal = ctx.skipEmptyStates(result[0].intVal.int)
+  else:
+    for i in 0 ..< n.len:
+      n[i] = ctx.skipThroughEmptyStates(n[i])
+
+proc newArrayType(g: ModuleGraph; n: int, t: PType, owner: PSym): PType =
+  result = newType(tyArray, owner)
+
+  let rng = newType(tyRange, owner)
+  rng.n = newTree(nkRange, g.newIntLit(owner.info, 0), g.newIntLit(owner.info, n))
+  rng.rawAddSon(t)
+
+  result.rawAddSon(rng)
+  result.rawAddSon(t)
+
+proc createExceptionTable(ctx: var Ctx): PNode {.inline.} =
+  result = newNodeI(nkBracket, ctx.fn.info)
+  result.typ = ctx.g.newArrayType(ctx.exceptionTable.len, ctx.g.getSysType(ctx.fn.info, tyInt16), ctx.fn)
+
+  for i in ctx.exceptionTable:
+    let elem = newIntNode(nkIntLit, i)
+    elem.typ = ctx.g.getSysType(ctx.fn.info, tyInt16)
+    result.add(elem)
+
+proc newCatchBody(ctx: var Ctx, info: TLineInfo): PNode {.inline.} =
+  # Generates the code:
+  # :state = exceptionTable[:state]
+  # if :state == 0: raise
+  # :unrollFinally = :state > 0
+  # if :state < 0:
+  #   :state = -:state
+  # :curExc = getCurrentException()
+
+  result = newNodeI(nkStmtList, info)
+
+  let intTyp = ctx.g.getSysType(info, tyInt)
+  let boolTyp = ctx.g.getSysType(info, tyBool)
+
+  # :state = exceptionTable[:state]
+  block:
+
+    # exceptionTable[:state]
+    let getNextState = newTree(nkBracketExpr,
+      ctx.createExceptionTable(),
+      ctx.newStateAccess())
+    getNextState.typ = intTyp
+
+    # :state = exceptionTable[:state]
+    result.add(ctx.newStateAssgn(getNextState))
+
+  # if :state == 0: raise
+  block:
+    let cond = newTree(nkCall,
+      ctx.g.getSysMagic(info, "==", mEqI).newSymNode(),
+      ctx.newStateAccess(),
+      newIntTypeNode(nkIntLit, 0, intTyp))
+    cond.typ = boolTyp
+
+    let raiseStmt = newTree(nkRaiseStmt, emptyNode)
+    let ifBranch = newTree(nkElifBranch, cond, raiseStmt)
+    let ifStmt = newTree(nkIfStmt, ifBranch)
+    result.add(ifStmt)
+
+  # :unrollFinally = :state > 0
+  block:
+    let cond = newTree(nkCall,
+      ctx.g.getSysMagic(info, "<", mLtI).newSymNode,
+      newIntTypeNode(nkIntLit, 0, intTyp),
+      ctx.newStateAccess())
+    cond.typ = boolTyp
+
+    let asgn = newTree(nkAsgn, ctx.newUnrollFinallyAccess(info), cond)
+    result.add(asgn)
+
+  # if :state < 0: :state = -:state
+  block:
+    let cond = newTree(nkCall,
+      ctx.g.getSysMagic(info, "<", mLtI).newSymNode,
+      ctx.newStateAccess(),
+      newIntTypeNode(nkIntLit, 0, intTyp))
+    cond.typ = boolTyp
+
+    let negateState = newTree(nkCall,
+      ctx.g.getSysMagic(info, "-", mUnaryMinusI).newSymNode,
+      ctx.newStateAccess())
+    negateState.typ = intTyp
+
+    let ifBranch = newTree(nkElifBranch, cond, ctx.newStateAssgn(negateState))
+    let ifStmt = newTree(nkIfStmt, ifBranch)
+    result.add(ifStmt)
+
+  # :curExc = getCurrentException()
+  block:
+    result.add(newTree(nkAsgn,
+      ctx.newCurExcAccess(),
+      ctx.g.callCodegenProc("getCurrentException", emptyNode)))
+
+proc wrapIntoTryExcept(ctx: var Ctx, n: PNode): PNode {.inline.} =
+  let setupExc = newTree(nkCall,
+    newSymNode(ctx.g.getCompilerProc("closureIterSetupExc")),
+    ctx.newCurExcAccess())
+
+  let tryBody = newTree(nkStmtList, setupExc, n)
+  let exceptBranch = newTree(nkExceptBranch, ctx.newCatchBody(ctx.fn.info))
+
+  result = newTree(nkTryStmt, tryBody, exceptBranch)
+
+proc wrapIntoStateLoop(ctx: var Ctx, n: PNode): PNode =
+  # while true:
+  #   block :stateLoop:
+  #     gotoState :state
+  #     body # Might get wrapped in try-except
+  let loopBody = newNodeI(nkStmtList, n.info)
+  result = newTree(nkWhileStmt, newSymNode(ctx.g.getSysSym(n.info, "true")), loopBody)
+  result.info = n.info
+
+  if not ctx.stateVarSym.isNil:
+    let varSect = newNodeI(nkVarSection, n.info)
+    addVar(varSect, newSymNode(ctx.stateVarSym))
+    loopBody.add(varSect)
+
+    if not ctx.tempVars.isNil:
+      loopBody.add(ctx.tempVars)
+
+  let blockStmt = newNodeI(nkBlockStmt, n.info)
+  blockStmt.add(newSymNode(ctx.stateLoopLabel))
+
+  let gs = newNodeI(nkGotoState, n.info)
+  gs.add(ctx.newStateAccess())
+  gs.add(ctx.g.newIntLit(n.info, ctx.states.len - 1))
+
+  var blockBody = newTree(nkStmtList, gs, n)
+  if ctx.hasExceptions:
+    blockBody = ctx.wrapIntoTryExcept(blockBody)
+
+  blockStmt.add(blockBody)
+  loopBody.add(blockStmt)
+
+proc deleteEmptyStates(ctx: var Ctx) =
+  let goOut = newTree(nkGotoState, ctx.g.newIntLit(TLineInfo(), -1))
+  ctx.exitStateIdx = ctx.newState(goOut, nil)
+
+  # Apply new state indexes and mark unused states with -1
+  var iValid = 0
+  for i, s in ctx.states:
+    let body = s[1].skipStmtList()
+    if body.kind == nkGotoState and i != ctx.states.len - 1 and i != 0:
+      # This is an empty state. Mark with -1.
+      s[0].intVal = -1
+    else:
+      s[0].intVal = iValid
+      inc iValid
+
+  for i, s in ctx.states:
+    let body = s[1].skipStmtList()
+    if body.kind != nkGotoState or i == 0:
+      discard ctx.skipThroughEmptyStates(s)
+      let excHandlState = ctx.exceptionTable[i]
+      if excHandlState < 0:
+        ctx.exceptionTable[i] = -ctx.skipEmptyStates(-excHandlState)
+      elif excHandlState != 0:
+        ctx.exceptionTable[i] = ctx.skipEmptyStates(excHandlState)
+
+  var i = 0
+  while i < ctx.states.len - 1:
+    let fs = ctx.states[i][1].skipStmtList()
+    if fs.kind == nkGotoState and i != 0:
+      ctx.states.delete(i)
+      ctx.exceptionTable.delete(i)
+    else:
+      inc i
+
+proc transformClosureIterator*(g: ModuleGraph; fn: PSym, n: PNode): PNode =
+  var ctx: Ctx
+  ctx.g = g
+  ctx.fn = fn
+
+  if getEnvParam(fn).isNil:
+    # Lambda lifting was not done yet. Use temporary :state sym, which
+    # be handled specially by lambda lifting. Local temp vars (if needed)
+    # should folllow the same logic.
+    ctx.stateVarSym = newSym(skVar, getIdent(":state"), fn, fn.info)
+    ctx.stateVarSym.typ = g.createClosureIterStateType(fn)
+
+  ctx.stateLoopLabel = newSym(skLabel, getIdent(":stateLoop"), fn, fn.info)
+  let n = n.toStmtList
+
+  discard ctx.newState(n, nil)
+  let gotoOut = newTree(nkGotoState, g.newIntLit(n.info, -1))
+
+  # Splitting transformation
+  discard ctx.transformClosureIteratorBody(n, gotoOut)
+
+  # Optimize empty states away
+  ctx.deleteEmptyStates()
+
+  # Make new body by concating the list of states
+  result = newNodeI(nkStmtList, n.info)
+  for s in ctx.states:
+    assert(s.len == 2)
+    let body = s[1]
+    s.sons.del(1)
+    result.add(s)
+    result.add(body)
+
+  result = ctx.tranformStateAssignments(result)
+  result = ctx.wrapIntoStateLoop(result)
+
+  # echo "TRANSFORM TO STATES: "
+  # echo renderTree(result)
+
+  # echo "exception table:"
+  # for i, e in ctx.exceptionTable:
+  #   echo i, " -> ", e