re: it could be on ->profitfinder Hi Profitfinder,here's the...

re: it could be on ->profitfinder Hi Profitfinder,

here's the answer to your question:

>>Would MHI give a company money if they know they are going to lose their investment.

The answer is No. Its a win-win situation for MHI, and a mixed situation for CMQ its shareholders. Here's why:

The $60 million that has been given to CMQ can be clawed back if CMQ fails to meet all the conditions utnil 30th September 2005. If MHI were to do this, CMQ would be placed in receivership. The value of the plant equipment and land + unused cash, would make up the money without much problem.

If CMQ do fail, MHI not only get their investment back, but they also get 8.5%p.a. interest on the money too!
Not bad.

If CMQ don't fail, MHI benefit from a cheap investment.

Just because CMQ is a 'good' investment for MHI, doesn't make it a good investment for me.

Joel