Quote:
Originally Posted by marxman
How can a company with such success in sales go bankrupt. I read an article which said the holding company which owned them somehow offloaded a bunch of debt on them and let them sink, I forget the details and don't know if its accurate but there has got to be something funny about a hugely successful outfit in sales can't bring in enough money
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This article explains it in detail.
https://www.nytimes.com/interactive/...untsville.html
This has been happening for 30 years all over the place but there’s concern that a big reckoning is on the horizon. By using these complicated debt swap schemes and asset backed securities you have large seemingly successful companies that are actually operating on a razor’s edge. When There’s a disruption in the pipeline somewhere things get ugly fast.
Hertz has found itself in a similar position lately but the underlying problems are interesting and probably not what you might assume.
https://www.npr.org/2020/06/24/88304...a-broken-hertz