Venkataramana further argued that the board’s dealings with bondholders were questionable, as the monies received from the issuance of Series 1 bonds should have been used to repay short-term lending instead of securing new projects. As a result, in the same month when the issue of the Series 1 bonds was completed, the company had already breached a financial covenant relating to the bond. He argued that the severe lack of judgment on the part of the board also led to AWT’s failure to complete the restructuring exercise, resulting in the cancellation of the Series 2 bonds.