Baillieu Valuation of VEC, page-415

What I don't follow with you thinking Matty is that if we follow that through you are suggesting the directors etc used Magna to get their bonus shares in a company that was destined to go broke because they used Magna which would make their bonus shares and current share holdings worth what exactly? Did anyone receive cash bonuses for the deal being signed? (serious question). If that was the case then your scenario stands up imo. If not though then it falls over?