String fullTitle = 'undefined';
int postNumber = 1457842;
String image = '1713911925973567.jpg';
String date = '04/23/24(Tue)18:38:45';
String comment = '>Private company ABC buys public company XYZ, using a large loan
>ABC restructures the loan so that it is secured by the assets of XYZ
>ABC spins off XYZ to become an independent company again
>XYZ still is saddled with the restructured loan
>XYZ becomes insolvent under the weight of its debt, and all its assets are sold off to pay off the loan
What is this strategy called? I think I've seen it given a name, but I can't remember what it is.
Example: >>>/tg/92588534';
'normally this is called a leveraged buyout, but the bought company usually doesn't have to get merged and spun out again (embracer just did that because they fucked up)
normally in leveraged buyouts, private equity firms buy a company with debt and then saddle that company with the same debt that was used to buy it all in one transaction.';
}