Baillieu Valuation of VEC, page-393

A big assumption that swami is making in his twitter post is that FT general only had less than US$10m as at January 2018 when judgement was entered against them, given that he states FT has no money.

Merely getting judgment awarded against you does not mean that you have no money. It means that the other person has been successful in asserting their rights to be paid the money that FT didn't want to pay. Think about the position of a subcontractor on a construction site being awarded judgment in their favour against the head contractor, does the head contractor suddenly have no money? No, it just has an obligation to pay the money that it didn't want to pay, but was always obligated to.

Now, if FT was entering into a formal funding deal with VEC in July 2018 for US$35m, then you would expect that they had at least US$35m available to them at that time and as such the US$10m judgment against them from 6 months prior would likely have been paid or appealed in the interim.

I suspect that there's plenty more to that issue that swami does not know or does not want to tell...