3 ms·
That's a shame. I still don't quite understand how they racked up so much debt. I get that they took on tons of compacts when the nation wanted midsize suv's, b
by Simulacra 6y ago
That's a shame. I still don't quite understand how they racked up so much debt. I get that they took on tons of compacts when the nation wanted midsize suv's, but it seems like somewhere an alarm bell should have been ringing a while ago...
- xnx 6y agoThe article does a pretty good job of laying out the many mistakes that compounded their problems.
- tonyedgecombe 6y agoThey were bought from Ford by private equity which loaded them with extra debt to finance a dividend. They offloaded it via an IPO a year later.
- rags2riches 6y agoIsn't dividends supposed to be payed from equity? "Loading with debt" will not increase the equity available for dividends.
- tonyedgecombe 6y agoYes but you might need that cash on hand for running the business.