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Were they legitimately in financial straights? or was it the thing where they want to force regulators to allow the deal by blowing up their own company? For e
by fooey 2y ago
Were they legitimately in financial straights? or was it the thing where they want to force regulators to allow the deal by blowing up their own company?
For example, Albertsons is blatantly doing this so Kroger can acquire them.
- idontwantthis 2y agoIs that why they are absurdly expensive compared to all of their competitors?
- fooey 2y agoThey're paying out an excessive dividend that completely empties their cash reserves and makes operating the company unsustainable https://www.opb.org/article/2022/11/12/oregon-ag-files-court-action-opposing-albertsons-payout-amid-proposed-kroger-merger/ https://www.opb.org/article/2022/11/12/oregon-ag-files-court...
- lupire 2y agoCorporate bankruptcy is a scam. Any merger on auction should acquire existing debts, and execs should be a lien against wealth and future income.
- nradov 2y agoWhat a ridiculous proposal. Eliminating corporate bankruptcy and making employees personally liable for business debts would wreck the US economy. If debtors take a haircut then it's their own fault for lending in the first place; no one is forced to buy corporate bonds and vendors always have the option of requiring cash on delivery.
- idontpost 2y ago> making employees personally liable for business debts would wreck the US economy Letting employees loot the company for their own profit isn't any better.
- hylaride 2y agoCounter-argument, moneylenders shouldn't loan money to companies doing this. And secured lenders have their protections. Anyways, they knew the game. Bankruptcy auctions are essentially debtors recouping as many of their costs as possible before writing off the rest (further minimizing future taxes).
- intuitionist 2y agoI don’t have a real strong view on this specific situation one way or the other but it’s relevant that the appeals courts pretty quickly threw out this suit and allowed Albertsons to pay the dividend.
- Aloha 2y agoYes, they consistently lost money from 2008-2019.