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Warm C with dilute aqueous acid to hydrolyse the iminium ion to the second ketone. water attacks the iminium carbon, proton transfers give a carbinolamine, and C–N cleavage releases pyrrolidine, present predominantly as its ammonium salt in the acidic medium. The two carbon–carbon bonds constructed in the preceding Michael additions remain intact. This replaces the iminium nitrogen substituent by oxygen and gives the diketone D; neither oxidation of the skeleton nor reduction of the original ketone is required.

The cyclohexanone enamine attacks the beta carbon of the cyclopentenone. Its nitrogen lone pair forms an iminium C=N bond as the enamine pi bond forms the new C–C bond; simultaneously the enone pi system shifts onto its oxygen. proton transfer converts the resulting cyclopentanone enolate back to the ketone.

A final iminium deprotonation regenerates an enamine, but the position of its double bond matters. Label the nitrogen-bearing cyclohexane carbon $h_1$, its initially nucleophilic neighbour $h_2$, and the other neighbour $h_6$. After addition, $h_2$ bears the cyclopentanone substituent. deprotonation at $h_6$ gives $h_1=h_6$, the less substituted, less hindered enamine drawn in A. Merely restoring the original $h_1=h_2$ bond would give a different regioisomer. Interconversion through the iminium ion permits this enamine regioisomerization under the reaction conditions. The methyl and mesylate substituents are spectators during this first Michael addition.

Sodium borohydride is chemoselective for the ketone; lithium aluminium hydride reduces both the ketone and the lactam. In an amide, donation of the N lone pair into the carbonyl $\pi$ system reduces the carbonyl carbon's electrophilicity. It is therefore substantially less susceptible to the milder hydride donor.

Lithium aluminium hydride supplies more strongly reducing hydride equivalents, and the strong affinity of aluminium for oxygen assists removal of the amide oxygen through the iminium pathway. This difference explains both the unchanged lactam carbonyl in B and the absence of that oxygen in C. Both reactions are interpreted after the usual protonating workup.