Lynn James was in the vortex of a set of crises. Lynn, an entrepreneur and the president, CEO, and 75% owner of Wind River Energy Inc., was one week away from closing a deal to secure much-needed financing for existing and new operations via an independent public offering (IPO) on NASDAQ under the sponsorship of prominent stockbrokers in New York and Toronto.

All Lynn had worked for was in danger of going up in smoke, and there was grave risk to the lives of innocent workers and citizens. What on earth could and should Lynn do?

Over the last nine years, Lynn had been very successful. Initially, Lynn had been intrigued by the possibility of developing small, freestanding energy installations that fed their power into regional electrical grids or provided power to small, isolated towns. It had been possible to acquire and refurbish several small hydroelectric generating stations that had been mothballed by large northeastern energy producers or the small cities that still owned them. Due to the rise in the cost of fossil and nuclear fuels, these waterfall plants made a rate of return on invested capital of roughly 22%.

Over the years, Lynn and various associates had bought and refurbished five plants, sold two, and continued to operate three in Ontario and Vermont. Based on successful operations in the East, Lynn had arranged for the incorporation of Wind River Energy Inc., into which energy holdings were transferred to provide collateral for bank loans and vendor mortgage financing. During the last six years, Lynn became interested in the generation of energy using windmills. After visiting “wind farms” in California and off the shore of Denmark, Lynn realized that the wind conditions were exceptionally favorable just east of portions of the Rocky Mountains.

He began to investigate providing energy needs to small, isolated towns in that area. Four years ago, a ten-windmill installation was developed outside of Freeman, Alberta, which initially contributed to the town’s energy needs. The town owned an old hydroelectric plant on the local river and had a backup oil generator system for emergencies. Two years ago, Wind River acquired the town’s energy generation systems and became the sole source of energy for Freeman. Four years ago, Freeman was a town of 2,000 homes that was using all the energy it could produce, so it welcomed the windmill installation.

Since that time, 750 more homes were built to house the workers at two new mines in the area, and the town’s hospital was enlarged. Further investment was now needed to provide additional generating capacity...........

Question:-

1. What would you do if you were Lynn?