BPR Structure Needs RevampingAfter thinking long & hard about this, based on the latest news release its pretty obvious to me that this joint venture needs to get restructured in order to get financed. Having a public company own 50% of an interest in this, where its partner is so poor that they need to get loans from BPR, is not going to work.
The clear solution is for BPR to buy out MMI's interest by offering them a whole mess of stock in BPR. They could also agree to put some MMI guys on the BPR board. This would allow for the public company to own a 100% interest in the project, and financiers would be more comfortable buying into this kind of stucture, since they won't have to worry about whether the other 50% can come up with their part of the bargain.
Assuming BPR management are not idiots they would be working on this restructuring now, before they go to raise any more money. Wondering what you or others think of this.