There's other, more logical, explanations for the insiders trades.
My theory revolves around their relationship with the note holders. As the price dropped they were probably worried about getting their money back. They were probably threatening lawsuits. Buying them out would keep them happy.
A stinky pinky CEO has to have a good relationship with the shady lenders who are unscrupulous enough to do such deals. They can't just walk into Wells Fargo and get a loan.
After all, it was money they were given by writing the convertible notes in the first place. Giving a small percentage back might have been difficult but if you look at the total amount of money they've extracted from this little scheme over the years it was a trivial amount.
Plus, insider buying is a great way to pump a stock...
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