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.
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