5b analysis, page-14

Just had a look at the loan share buyback details, seems like it was mainly for the benefit of the directors as HotTuna suggested.

From the 2011 AGM announcement:

I don't get it though. If a loan was given to buy those shares and the employees choose not to repay the loan, can't Cudeco re-acquire those shares without paying for them? I guess the only logical explanation is that the loan shares were purchased using the employees own money and the loan effectively acted as some sort of share price guarantee. But then it doesn't seem like a loan at all.