@IRON HORSE posted:Ain't that the truth. That's a universal truth in business. No bank lends money if the numbers do not work. I'm sure MTH's situation is complex because they have an established brand, intellectual properties, patents, and then you have tangible assets, many of which appear to be being sold now. A lender and buyer might have their hands full in evaluating that, not to mention the production is done in China. Plus, Mike Wolf's hard work is probably worth a lot more in his mind than what a buyer may be willing to pay.
In my make believe train world, MTH is still running fine, though.
Let's tackle this from two fronts. The post by Iron Horse isn't quite true. Banks were forced to lend money to home owners by the Clinton Administration but as that makes this a political post, we'll ignore the facts. I am sure he is referring to normal business loans.
Secondly, I doubt if anyone in this forum(other than Mr. Wolf himself) knows the corporate structure and relationship of his (what could be) corporations or his personal balance sheet. For example, did MTH Trains own the building in Columbia and was leasing the land for thirty or fifty years from MW Limited? Did MTH Trains lease the building and land from Mike Wolf Holdings? What depreciation schedule was being used? Were payments made ahead of time or were they in arrears? Disregard the toy train aspect, look at it as a building, land and investment venture. Mike Wolf is a pretty sharp guy with I feel certain a competent staff to advise him.
John
