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Some years ago, I witnessed a situation where a predatory investor signed a contract with a firm which obligated the firm to immediately start meeting commitmen
by yodon 5y ago
Some years ago, I witnessed a situation where a predatory investor signed a contract with a firm which obligated the firm to immediately start meeting commitments without specifying the date by which the investor was obligated to provide the promised funds.
The investor never transferred the funds to the company, using what they knew about the company's cash-flow situation to purposely drive the target company into bankruptcy to gain control of the company's assets (and past payment stream, but that's another story) in bankruptcy court using preferential terms guaranteed them in the contract.
- thecleaner 5y agoName and shame ?
- throwaway_au_1 5y agoI don't know of the scenario that the above poster is speaking of, but it is believed/speculated that Harley Davidson did something similar to Alta Motors (electric motorcycles) inside the last 2-3 years.