it is always darkest before the dawn, page-10

Fly

I'm just trying to follow the finance scenario here. If a single project requires $100 mill let's say $70 mill is funded by loans, and $30 mill comes from equity.

If PAX brings in a new partner to provide the $30 mill then that partner takes 30 % of the project and 30 % of the net profits, after paying the finance, operations and tax. PAX gets its income from the other 70 %.

Have I got that right?

If so, then there may be no need for PAX to raise more cash, although the funders may bargain to 40 or 50 % equity for their $30 mill in this example, leaving PAX shareholders worse off.