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Bankruptcy can definitely be in the creditor's interest. It can take possession of the company's assets, and then sell them off to recover principal (in additio
by vm 9y ago
Bankruptcy can definitely be in the creditor's interest. It can take possession of the company's assets, and then sell them off to recover principal (in addition to many other outcomes - bankruptcy is complicated).
Debt incentives do not align with equity.
- thecrazyone 9y agoI don't equity investments align in interest either - among Founders, angels, VCs, PEs and public shares. There's enough material to backup the struggle between any of these entities