Braidy Industries' $15 million loan to CEO raises questions, experts say

[TexasTowelie]

LOUISVILLE, Ky. (WDRB) – Braidy Industries Inc.'s disclosure this week that its CEO borrowed about $15 million from the company earlier this year should “raise some eyebrows,” according to a longtime expert in corporate governance.

Charles Elson, director of the John L. Weinberg Center for Corporate Governance at the University of Delaware, told WDRB that corporations generally avoid lending money to their executives – and federal law makes the practice illegal for publicly traded firms.

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While a private business, a significant portion of Braidy Industries’ initial capital came from Kentucky taxpayers when Gov. Matt Bevin’s administration invested $15 million in public money in the company last year.

Braidy Industries plans to build a state-of-the-art aluminum mill in Ashland, Ky., and to create 600 high-paying factory jobs when the mill opens in 2020.

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The company is now looking to raise another $400 million through stock sales over the next six weeks so that it can have sufficient capital to borrow for the construction of the mill, estimated to cost $1.68 billion.

Read more: http://www.wdrb.com/story/39149217/braidy-industries-dollar15-million-loan-to-ceo-raises-questions-experts-say



First, Gov. Matt “Slick” Bevin convinced lawmakers to approve a $15-million investment of your money for an aluminum factory without revealing the purpose before they voted. Republicans typically moan about governments picking winners and losers, but not this time. Now, it turns out, Braidy Industries Inc. “hasn’t raised anything close to the $1.68 billion needed to complete construction of the plant,” WDRB’s Chris Otts wrote. So it needs to borrow up to $1 billion from the federal government and receive $500 million in credit from the German government… Does that make Bevin a Social Democrat? But even that won’t be enough government money. So now it wants investors to buy $400 million in stock, Otts wrote.

https://www.leoweekly.com/2018/09/thorns-roses-worst-best-absurd-74/


Geez, why would anyone think that something fishy is going on?