IDEAS home Printed from https://ideas.repec.org/a/wsi/acrjxx/v18y2014i02ns0218927514500096.html
   My bibliography  Save this article

Melville Corporate Finance, Inc

Author

Listed:
  • Andrew Ray Lanney

    (Canadian International Development Agency, Gatineau, Québec, Angeline Pacione of Export Development Canada, Santiago, Chile)

  • Prescott C. Ensign

    (Schlegel Centre for Entrepreneurship, Wilfrid Laurier University, Canada)

Abstract

Melville Corporate Finance, Inc. (Melville) is approached by a Canadian bottling equipment manufacturer to provide $3.4 million of capital investment foreign buyer financing to their customer, a rapidly expanding Chinese bottling company. The Chinese company needs to purchase the equipment and increase its production capacity to secure long-term, multi-million dollar contracts with Pepsi and Coca-Cola in Thailand. With very short deadlines, Melville's CEO works with Export Development Canada (EDC) to assess the risks involved in offering full financing and insurance for the Chinese bottler, and must keep in mind that the Canadian manufacturer will lose the sale if the financing does not get approved. The deal presents several challenges to Melville; an unknown foreign buyer with no proven credit history, language and communication barriers, geographic distance, incongruent accounting standards, etc. As the risk variables emerge, both Melville and EDC must decide if the stakes are too high to support the transaction.

Suggested Citation

  • Andrew Ray Lanney & Prescott C. Ensign, 2014. "Melville Corporate Finance, Inc," Asian Case Research Journal (ACRJ), World Scientific Publishing Co. Pte. Ltd., vol. 18(02), pages 221-249.
    • Handle: RePEc:wsi:acrjxx:v:18:y:2014:i:02:n:s0218927514500096
    DOI: 10.1142/S0218927514500096
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0218927514500096
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S0218927514500096?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:acrjxx:v:18:y:2014:i:02:n:s0218927514500096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/acrj/acrj.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.