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sspiff 3 hours ago

There is precedent for this kind of trickery being played.

For example, Honeywell acquired Garrett AiResearch, a well known manufacturer of turbochargers for combustion engines, through a series of mergers.

Later on, it loaded them up with debt (over $1.5 billion, mostly asbestos related indemnity obligations from other parts of the business), before spinning them out as an independent entity again. Two years later, Garrett filed for bankruptcy claiming it was succumbing to the unsustainable debt burden placed upon it by its former owner.

stevefan1999 2 hours ago | parent | next [-]

So you mean...marrying someone but transfer all the personal debt to the others, then divorcing so that I have no responsibility whatsoever? Not even an obligation to settle for the debt just like disappeared through an expired relationship?

nashashmi an hour ago | parent | next [-]

Is there a legal term for this kind of restructuring of debt?

stevefan1999 an hour ago | parent | next [-]

I vibe asked it on Kagi Assistant and it said the closet relevant result is https://en.wikipedia.org/wiki/Texas_two-step_bankruptcy

To me it seems more like leveraged buyouts + debt restructuring all at once. I rather coin this term "debt offloading", which could also cover the cases with Enron for the tactics they used about 25 years ago

svpernatvral an hour ago | parent | prev | next [-]

Scamming the state through private debt emission.

Ozzie_osman an hour ago | parent | prev [-]

"Private Equity"

BigTuna 2 hours ago | parent | prev [-]

Welcome to late stage capitalism

chatmasta an hour ago | parent [-]

This is early 1990s capitalism.

BigTuna 40 minutes ago | parent [-]

1980s even. It takes a while to siphon off all the value built up by multiple generations.

dpoloncsak an hour ago | parent | prev | next [-]

I believe this is what they call the 'Texas Two-Step'

unixhero an hour ago | parent [-]

Sure it is not a Kansas City shuffle?

renticulous 2 hours ago | parent | prev [-]

Perplexity wants to buy Google Chrome vibes.