UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 72199  
Subject: Re: When top brass kill a company by borrowing Date: 11/18/2012 2:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 8
when top brass kill a company by borrowing and then paying themselves big pay days.....is that a type of fraud?

Bah!! Humbug!! They put their money up to buy the company. They own it. They can do as they please.

Who are the fools who loaned them the money to buy the company? Were the bonds properly rated? Or were they high risk junk bonds?

As to the employees who lost their pensions, my sympathy, but they were working for a company that was on its last legs and they knew it. Why did they stay?

The hedge fund investments let them keep their jobs longer. If the hedge fund/high risk investors had been unwilling to invest, the company would have been liquidated sooner. Would pension funds have gotten more money or not?

The bankruptcy judge from before probably should have been more careful to protect pension funds. But if he rejected the hedge funds plan, people lost their jobs sooner. Which is the priority? Protecting pensions or keeping jobs.

The hedge funds saw a way to keep the company alive in some form. They took a risk and for a while were rewarded for it. Nice bonuses in the good times are probably OK. But I suspect they have lost millions in the bankruptcy and I wonder if they will get big bonuses this year?

Fridays WSJ had article about work rules. Truck drivers could not load their own trucks. Bread loaders could not load cakes. Extra man was needed to bring product out of the store room and put it on the store shelf.

The company had been for sale for some time. There were no takers probably because work rules made the business uncompetitive.

It will be interesting to see if buyers of the brands also buy the plants. Buying plants probably means union approval and high costs. So at minimum if they buy equipment, they will probably move it to the closest right to work state.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Apple

The Saddest Place on iPhone Day
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement