These private equity scams seem to revolve around borrowing money, transferring the debt to a separate legal entity that then declares bankruptcy, and pocketing

These private equity scams seem to revolve around borrowing money, transferring the debt to a separate legal entity that then declares bankruptcy, and pocketing the money. If that’s true, then it would seem that creditors (and AL taxpayers in this case) end up holding the bag. How are savvy lenders falling for this?