I was thinking about the convertible notes Hugh; I think most likely the Chinese government invests about $17.5 mln in Kiwa as your DD suggests, and Kiwa repays Ribotsky and the relationship is terminated.
But what if Kiwa decides NOT to repay Ribotsky with the proceeds from the government's investment? (I'm not suggesting they won't, it is a purely hypothetical question at this point.) First of all, who would have jurisdiction in legal proceedings in this matter...China or the US? Because I don't think Ribotsky would stand a chance of recouping the money in China. So I guess the question really boils down to is if it is the United States, would Ribotsky even bother? The legal proceedings would inevitably disclose his manipulation of the stock so while I'm sure he would threaten legal action against Kiwa, I'm not sure he'd really follow through with it because it would most likely bring about significantly more trouble then it is worth.
Just a few thoughts and what ifs. However if I had to bet, I think the single most likely scenario involves a significant investment by the Chinese government and Kiwa paying off the notes with a small portion of the proceeds.
