Well avaya has 1 b debt they secured 700 million for operations. They knocked 4B off down to 300. So 1b debt. No new customers mostly goverment
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Chapter 11. If you owe 300 million, it's your problem. If you owe 3 billion, it's the lenders problem.
Avaya only paying the interst on the debt until profits drops to a level where even that cannot be done.
The world If leveraged buy outs is a strange one.
They wiped out retail investors, sad that alot of employees bought stock after Alan joined based on the spin he gave and now they face financial ruin,
Avaya is willing to sell its kids just to make a few pennies
The mortgage analogy is good....
Except. They had the money. They could have made the 'balloon" payment.
They CHOSE to default to enable Apollo.
Fraud.
Deutsche Bank - they'll do anybody.
To use your analogy, it’s the equivalent of the company who bought your mortgage debt from a bank for pennies on the dollar taking ownership of the house (you no longer owe the mortgage debt) but letting you live in it and instead pay them rent. They can keep the house and collect your rent or they can then sell the house and the new buyer can decide what to do with you as the tenant.
What makes this a kick in the plums…imagine you owe $300k on the mortgage and this company takes over the mortgage debt for $30k, forces you into bankruptcy, and then owns a $300k home for ~30k.
Sound like you either need a better sugar daddy/mama and/or better lawyers
Not sure either but I think it might be in the same secret bank account where my 10K in Avaya stock is hiding. Never to be seen again. Least not by me...