Would you recommend the implementation of project Chariot?

Yes, I would go for project chariot as it could solve the present crisis of the
company.
Equity holders would benefit from the emerging profitable solutions.
Both the companies would be able to raise additional equity funds.
The division would enable MC to concentrate on its core businesses, creating more
value.
As there would be separate financial statements for both, the shareholders would be
better informed.
It brings in benefits for both management and increase shareholders confidence.
Bondholders are at stake as company might face a couple of lawsuits, which will
probably impact its brand and stock prices and bring additional problems. If a
bankruptcy is filed, it could be a major issue that would effect the reputation of
MC. This could be mitigated by launching the project Chariot.
The company can move over the bad financial climate and look out for new business
opportunities. The advantages outweighs the demerits and hence it should be
recommended.

Class Notes