4 ms·
I thought this was a fairly standard practice as part of leveraged buyouts? I'm no private equity investor though so no idea.
by TechBro8615 4y ago
I thought this was a fairly standard practice as part of leveraged buyouts? I'm no private equity investor though so no idea.
- user3939382 4y agoThis was it: Johnson & Johnson https://www.reuters.com/legal/jjs-ltl-units-bankruptcy-dismissed-by-us-appeals-court-filing-2023-01-30/ https://www.reuters.com/legal/jjs-ltl-units-bankruptcy-dismi... This case is specifically about this strategy in bankruptcy but I wouldn't be surprised to see this decision propagate more broadly. > J&J is among four major companies that have filed so-called Texas two-step bankruptcies to avoid potentially massive lawsuit exposure. The tactic involves creating a subsidiary to absorb the liabilities and to immediately file for Chapter 11.