1-What are Buffett's goals in trying to buy MEG?
2-Is the newspaper division of MEG worth $142 million? Explain, supported by appropriate justifcation.
3-How much value, for Buffett, is in the credit agreement? This is a tricky question because you have no analytic model designed for this question. Look carefully at the yellow-highlighted case exhibits for some guidance. Think of arbitrage. Think of the difference between borrowing and lending rates.
4-As an existing lender to MEG, explain whether or not you would refinance the $225 million term loan coming due. Think of the analytic modeling you might do to answer, whether you do it or not.
5-As a new lender, explain the same question posed in #4 above. The same analytic modeling applies here too.
6-What are Morton's options? Advise him.