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Private equity groups. Several have been brokering their debt restructuring over the years. Here's their most recent complete restructuring from about a year ag
by Dirlewanger 8y ago
Private equity groups. Several have been brokering their debt restructuring over the years. Here's their most recent complete restructuring from about a year ago (http://www.insideradio.com/free/restructuring-will-wipe-billion-of-iheartmedia-s-debt/article_a8f332f0-28e7-11e8-aa69-af3eb5d38002.html http://www.insideradio.com/free/restructuring-will-wipe-bill...) (they're currently in bankruptcy at the moment.)
- pmoriarty 8y agoSo what incentive do they have for "rape and pillage" of companies if they ruin them and themselves in the process?
- Spooky23 8y agoBecause the partners collect big fees on the way in and out. Toys R Us is a great example. The PEG people invested 20%, dumped the debt on the Toys R Us balance sheet, and yielded at least $200M in fees. They are also able to harvest paper losses to offset taxes.
- pmoriarty 8y agoPardon my ignorance, but who's paying their fees, and why would anyone pay fees to people who ruin companies and pocket fees for doing a poor job?
- Spooky23 8y agoThe acquired company. The people running the company are the people collecting the money. Why would they do so? They are “turning the company around!”.