RE:Let MPV stand as an exampleFactsR, it is helpful for a company to have, in addition to a fairly loyal shareholder base, a significant holder willing to backstop the rights offering when it is used, as in MPV's case, to raise additional funds (in this case, for the cost overrun facility). I do recall some grumbling in this thread at the Rights terms a couple of years ago, but not a wholesale uprising. I'm sure the "smoothness" of the Rights offering for a not insubstantial amount (C$95mm) was instrumental in negotiating more favorable terms for the otherwise major funding with the consortium of banks.
...and yes, it is now a profitable Rights offering to those who could take advantage of it.
Cheers.