Quote:
Originally Posted by GrantDawg
How does a bankruptcy court treat a new company owner that files two weeks after the purchase mainly because of the debt he brought to the company?
|
Probably like any other bankruptcy, although
this case from the Southern District of New York shows a judge taking a very dim view towards these financial shenanigans.
In reality, IMO, there need to be laws against this kind of leveraged buyout when it's not even close to clear how the debt will realistically be serviced. These stupid financing decisions end up, as we've seen time and time again, costing lots and lots of people their jobs & livelihoods (if you have little sympathy for Twitter's highly-paid coders, spare a thought for the blue collar workers who service their many facilities).