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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (49920)	8/26/1999 7:17:00 PM
From: Think4Yourself	Respond to of 95453

A few "bean counter" questions regarding RRC... I am still evaluating RRC and am confused about their Joint Venture arrangements. It is my understanding that both RRC and FE are going to contribute 50% of the assets and debt to the venture. RRC will contribute 300 Mil in assets and 200 Mil in debt. It is also my understanding that they will each own 50% of the venture. How do they get the debt off their sheets by doing this? Also, they are contributing more assets than debt to the JV, so isn't their remaining debt a higher percentage of their net worth, thus increasing their leverage? Very grateful if someone could explain how this works (and what a "non recourse liability" is). The Joint Venture looks like it will have some great synergies. Confused