The terms of the loan were accepted by the independent members of the Company's Board of Directors, with Dr. Diwan recused from any discussions. Recused from any discussions, except that he (no doubt) set the terms of the loan.
Actually, I don't have so much of a problem with the terms of the loan, per se. I do have a problem with the terms of the licensing agreements, and the chicanery that has led us to this point. This company will NEVER make money for its common shareholders (in aggregate). I don't know that Diwan intended it that way, but he has certainly made it a priority to take care of himself, at great expense to the common shareholders.
Since it has become obvious that the company is never going to make money for the common shareholders, and that he was the driver of the bus over the cliff (good thing for him that he had the forethought to provide a parachute for the driver), he seems entrenched in his belief that he still deserves his spoils, whereas it was just tough luck that he swindled the shareholders out of their $100 mn due to his egregious licensing terms and the general display of managerial corruption, which have severely hampered the company's ability to raise funds from the sale of common equity.
The impending failure of this company, no doubt, lies at the feet of Diwan, et. al. |
