I was the one – although perhaps there were others – that mentioned here that MP would likely run into problems at some point. I don’t have time at the moment, but I’ll show you why MP’s principals will still make out like bandits even if several of these projects end up underwater. First clue: most are financed by different banks and are structured as separate entities that aren’t tied together. As long as MP puts up its 20%-25% equity into the deal generally the lender won’t ask for personal guarantees or additional corporate guarantees. But I gotta run for now…
