What i still don’t quite understand with these kind of buyouts is who lends them the money and who gets saddled with the debt? Surely banks know the drill and wouldn’t want to borrow and hold debt for a company destined to fail in such a way.
Do banks get repaid before that happens and the only people being owed are small contractors and employees? Does the bank repackage the debt and sell it to someone else? Or are the interest payments high enough to just factor in losing part of the money borrowed with high certainty?
What i still don’t quite understand with these kind of buyouts is who lends them the money and who gets saddled with the debt? Surely banks know the drill and wouldn’t want to borrow and hold debt for a company destined to fail in such a way.
Do banks get repaid before that happens and the only people being owed are small contractors and employees? Does the bank repackage the debt and sell it to someone else? Or are the interest payments high enough to just factor in losing part of the money borrowed with high certainty?
I’m guessing D) All of the above.