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the holding company offered a generous interest rate of around 11 percent. When the interest payments were due, the holding company paid them not in cash but wi
by CalChris 8y ago
the holding company offered a generous interest rate of around 11 percent. When the interest payments were due, the holding company paid them not in cash but with paid-in-kind notes, that is, with more debt.
Who could refuse such a deal?
- sigstoat 8y ago> In 2010, Cerberus had the holding company borrow $225 million from an undisclosed group of lenders, most likely hedge funds. [...] ah, thank you for pointing that out. but then: > In April 2012, Cerberus did something fateful, which probably seemed smart at the time. It had Remington borrow hundreds of millions of dollars and use it to buy the holding company’s debt hm so the first set of lenders were paid off. did the second set get similar terms?