Preston Resources, a small Australian mining company, bought the Bulong nickel mine at $ 319 million in November 1998 and funded the purchase of issuing U.S. $ 185 million ($ 294 million) project communication. While production was under way for several months, and the construction of the plant was essentially complete. Almost from the beginning, however, a number of design and operational problems, shut down production and expensive repairs. While processing performance improvement by the end of 2000, problems with service in pursuing the plant and the output remained well below the forecast level. This case is set in 2002, concerns the financial implications of these issues, including the bond default in January 2000, and the efforts of Preston on the debt restructuring project. "Hide
by Benjamin C. Esty, Michael Kane Source: Harvard Business School 20 pages. Publication Date: July 11, 2002. Prod. #: 203027-PDF-ENG
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