The dividends "return of cash" was part and parcel of PTSC being able to redeem the convertibles. Had it not been for them, I humbly suggest, the convertibles would still be in existence.

They were inclusive and necessary.

Absolutely not, there was no provision in the convertible for a dividend (otherwise shareholders would not have participated) and S & L was selling no matter what.

The dividends only served 2 purposes

1. PR - they gave the illusion of a company that was going places
   
2. They awarded S & L a disproportionatle amount of cash on hand

The 2006 dividends may (repeat, may) have had some justification, but the 2007 dividend was unconscionable.