Creditors report, page-219

Hard to understand your rationale.

Big Un lead investors to believe that had received over 20m in cash from sales to customers in Dec Q (if I recall correctly). In truth, the 'customers' of Big hadn't agreed to buy anything from Big, but were signed up to get a free video in the hope that that video could be sold to them once produced. For Big to be able to afford to make the video, money was forwarded from the finance company.

Big mislead the market by suggesting this was income from clients, when in reality it was money loaned to Big to produce a product that could be potentially sold at a later date. Unfortunately no one was buying the product once made, leaving Big with a lot of money that had already been presented as receipts from customers that was nothing more than a working capital loan.

Investors would not have bought shares up to the market cap Big reached if they'd known that all the money was a working capital loan instead of receipts from paying customers.

Question is, was this a deliberate misleading of the market or gross ineptitude?