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> J&J's plan was to split into two pieces, which I'll call Goodco and Badco. Goodco got the operating assets, Badco got the talc liabilities and more or less im
by randycupertino 4y ago
> J&J's plan was to split into two pieces, which I'll call Goodco and Badco. Goodco got the operating assets, Badco got the talc liabilities and more or less immediately filed for bankruptcy. That's a maneuver that has come to be called the Texas Two-Step.
Isn't that what Dupont did with spinning off their PFOAS liability into Chemours?
Hell, Lehman even tried to do this with spinning off their bad real estate investments into "SpinCo" but nobody stayed with them to buy them even after they tried to split off their toxic assets.
https://seekingalpha.com/article/94962-lehman-s-dirty-laundry-stuck-in-the-spinco https://seekingalpha.com/article/94962-lehman-s-dirty-laundr...
- qikInNdOutReply 4y agoThis break aparts are usually CEOs deluding themselves, they can outrun the law, by creating a "sacrifice" lamb. And its a reasonable thought, for most mess ups, they could and can. But when so many victims are involved, even politicans do not dare to save them. You are a dead company walking, you just dont know it yet.