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The company's officers are in on the take. Legally they can take these actions on behalf of the company, as long it's clear and in the open.
by taylodl 3y ago
The company's officers are in on the take. Legally they can take these actions on behalf of the company, as long it's clear and in the open.
- pavon 3y agoIt is the bankruptcy part that I don't understand the legality of. Parent company pulls a ton of money out of subsidiary, claims bankruptcy, then magically parent company isn't liable for subsidiary's debt?
- Zigurd 3y agoPE isn't a parent company. LBO debt is debt carried by the acquired company. So there is no sleight of hand in bankruptcy. The poison is already in the acquired company's bloodstream.
- mikeyouse 3y agoYep, all correct. The sleight of hand comes just before bankruptcy when the assets are stripped and sold to a different entity so the debtholders are screwed with worthless assets and are stuck filing longshot lawsuits to recover assets while the ghouls who raided the company invest their ill-gotten proceeds while tying the mess up in court for years. https://archive.is/LsqUp https://archive.is/LsqUp