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That's not correct - creditors are usually banks for secured term debt or bondholders. The interest rates are not absurd. In this case, the bondholders are suin
by hnmullany 6y ago
That's not correct - creditors are usually banks for secured term debt or bondholders. The interest rates are not absurd. In this case, the bondholders are suing the private equity fund for stripping the asset. The bond in question looks like it had about a 10% interest rate
- hnmullany 6y agoThe lead bondholder is Marble Ridge Capital - a fund that specializes in distressed asset investing.
- paganel 6y agoTo be fair a 10% interest rate for debt sold in the last 2-3 years was kind of absurd, even for many junk bonds (of course I'm talking about the pre-virus situation).
- whatok 6y ago10% would have been high over that timeframe but imagine what shape that business was in.