Yup.
In plain language, folks: A leveraged buyout is when you borrow money to buy a company, buy the company, then put that debt on the newly-purchased company's books. If/When your newly-bought company fails, it takes your debt with it, and you get to walk away. This is what did in Toys 'R' Us.
Leveraged buyout is some class A rich people bullshit.
"I'd like to buy this company"
"How are you going to pay for it?"
"WIth the company I want to buy"
"Fine"
What the gibbering fuck is that all about?
The assets on the books of the bought out corp are industry standard sufficient as security for the loan. If they don’t do the business, another bank will.
That’s the justification. The real unwritten reason is the banks then make more money on the acquired asset’s failure driving “market change”
That market segment didn’t produce enough revenues for them, so if the writeoff for the lbo failing is less than revenues from new business, it’s a “rational” business choice
Can they put themselves first in line for any repayments from the dissolution? So they get paid off before anyone who didn't get paid for goods and services?
