Tai Bao is the largest in the quarries of coal mines in the world and is located in Shanxi Province in China. After eight years of planning and negotiation, Occidental Petroleum, the foreign partner in the deal is about to sign the ownership and financing agreement for $ 475 million, which includes $ 20 million of its own shares and limited recourse. The deal includes a number of unusual features, including an appeal to bind nonconcurrent, some tests of competition, and the covenant of forcing sponsors to buy out the entire project from the joint venture owning it if postcompletion default. Students must determine if the terms of the deal are attractive to both parties. "Hide
on W. Carl Kester, Richard P. Miller Source: Harvard Business School 13 pages. Publication Date: June 29, 1988. Prod. #: 288041-PDF-ENG
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