My guess is that the loan providers took advantage of the clause in the agreement that allowed them to use profits from trading in OSX shares as repayment for the loan. This was the only way they would get their money back, as OSX had no chance of repaying the interest, let alone the capital, with normal revenue. I think they've got both back with change on top.
"Insider trading" is defined quite tightly and difficult to prove. There are many loopholes that allow the beneficiaries to escape charges. In this case, I'm not sure the lending company would qualify but the directors of OSX do. I think they were aware from the beginning that they could not repay the loan, and engineered the details and timing of the loan and cap raise to bring about this outcome.
Things have moved quickly since my post that OSX would be in administration by the end of the year. I didn't expect it to crash so soon, but, if I could, would bet that this is the next step.
I hope ASIC investigates this and lays charges. All company directors of listed companies in Australia are insured, although that won't help shareholders. However, it would be nice to see criminal charges brought and jail time for the directors. It happens so rarely in Australia, but there is some hope in this case.
