At IPO in 2015 LVT was worth about $55m (366m shares @ $0.15 each). Karl's share was 30% ($18.3m) and Peter's share was 26.5% ($14.6m). Both had put their own money from sale of previous company into starting LVT in 2012. Lets assume they'd made 100% on their initial cash investment by time of IPO.
Karl's share now is woth about $6m. He has half that in loans some due by EOY. Do you think he is going to sell now and receive net $3m on an original cash investment of about $9m , 10 year's ago?