Listening
Gold Member
- Aug 27, 2011
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They didnt INVEST $100 million.
Really? Firstly, how much did they pay for the company?
Its all there in the links I provided already. Why dont you read a couple of them.
The initial investment was 8 million of borrowed money, which they then placed on GST books as debt...fairly common practice among venture capitalists and one that was illegal prior to the 1980's. Through the bond issuance alone, Bain collected 36 million dollars, while increasing GST debt by $125 million. Its been reported that they then borrowed another $61 million dollars to pay out as dividends to themselves ( Bain ), all on GST's books.
When it declared bankruptcy in 2001, Bain had increased GST debt to $554 million dollars.
I'd like to see a link.
If Romney (or anyone) can buy controlling interest in a company for 8 million and leverage it for 554 million....he's is one hell of a business man (and there are some pretty stupid bankers out there).
Please provide the links that show these numbers.
I am very curious to see how they pulled this off. The only way it would have happened is if they had somehow increased the value of the company that much (using the 125 million). Again, that would show how well they've done.....
But I am not buying it. They would have sold at an enormous profit had there been that much leverage to be had.