Yeah the article goes through the mechanism, but it's not a new story that private equity firms buy companies with debt that the target company ends up owning.

Yeah the article goes through the mechanism, but it's not a new story that private equity firms buy companies with debt that the target company ends up owning. It's a little bit interesting to read about how it's done but it's basically the same thing you can read about in Barbarians At the Gate. It's not that they wanted or didn't care about Remington going bankrupt -- if Remington doesn't pay back those loans, it'll be harder for Cerberus to fund the next LBO, Cerberus would prefer that the hedge funds who loaned the money make back their money -- it's that it's highly leveraged and very risky. They assume it won't work every time, but the law of averages isn't comforting to the people working at Remington.