Comment by friendzis
3 months ago
I have skimmed through the article and if I get the details through all the humor, satire and sarcasm even remotely correct, the major assets are actually the duality of payment obligations and residual value guarantees, both from meta. One could include cost overrun protection at the construction time too.
The "fire sale prices" would be so delicious as to guarantee that the entity(-ies) involved stay solvent as long as meta stays solvent.
My personal experience with LLC loans and banks is that the bank is using the assets as collateral and me as a backstop.
I thought the whole point of LLC was to limit liability so you wouldn't be liable for debt beyond your paid up capital? Why would you ever sign a personal guarantee?
>Why would you ever sign a personal guarantee?
So that they will lend you the money...
It's not always required, depends on the amount and the business.
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The liability I’m shielded from is not debt I specifically requested. I’m shielded from unknown events.
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banks are not stupid… you can’t just open LLC, borrow billion bucks, spend it and then be like “oops, LLC mates, not liable”
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"Me" in this case being a stand-in for the principal owner, which could be a corporation, individual, or group of individuals