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>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
>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
