Worst case is that financing doesn't get finished - agreed? What happens then? Plant is under construction and there are purchase contracts. So there appears to be some value, if completed. My best guess is STP will pick up pieces and finish. From current stockholder standpoint, I feel better that STP is also stockholder rather than a bondholder, but .... how will this affect us?
There's a decent chance that Merrill won't give Hoku $185 million for their plant but that doesn't mean that it won't get built. Hoku only needs to raise $100 million in debt financing and they can get that from anyone. The remaining cost can be raised in a private placement of some sort, either equity or convertables, and the stock would soar. I think Hoku can convince someone to lend them the money because they still have a lot to offer as opposed to the alternative of everything blowing up in smoke. You can be fairly generous in your terms when you have no other alternatives.
It will get done through Merrill and will be the full amount. Merrill is doing better than expected, so they can follow through. The terms may be more skewed in Merrill's favor. Time will tell. I say this week we will have an announcement!