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True, but if the company can't repay the loan, its creditors will have to be repaid from the bankrupt company's assets, so one possible outcome would be that Tr
by greenyoda 6y ago
True, but if the company can't repay the loan, its creditors will have to be repaid from the bankrupt company's assets, so one possible outcome would be that Treasury ends up paying $700M for the liquidated assets of a company worth much less than that.
On the other hand, if the company survives and the stock price rises to above where Treasury bought it at, Treasury could make a profit when it sells its shares.
- phonon 6y agoWell, assuming the company does not waste the loan proceeds, they would be trying to get back $700 MM from a company with $820 MM in assets.