What happens when this company fails? I would assume the debt would be auctioned off, and a firm that specializing in this sort of investment would scoop it up

What happens when this company fails? I would assume the debt would be auctioned off, and a firm that specializing in this sort of investment would scoop it up at a discount. It would be hilarious if they auctioned off the contracts separately. You could have couples (or a shill) showing up to bid on their own contract!