It is said about Chrysler’s new owner hedge fund Cerberus:
The smallest of the three automakers needs to negotiate more immediate savings to raise cash for operations, said the people, who don’t want to be named because the discussions aren’t public.
It seems that private equity funds (I also call them Kings of Junk) that were hit badly by recent junk bond crash are engaged in violent cost cutting at the companies they now own. That will include lay-offs, unprofitable branch closures and chopping corporations into something that could be re-sold to other hedge funds.
We’ll sure hear about that more very soon
August 26, 2007 at 12:59 am
[...] cash because of the credit crisis. This does not bode well for the employees of those companies. It seems that private equity funds (I also call them Kings of Junk) that were hit badly by recent junk bond [...]
August 30, 2007 at 1:57 pm
How does the renter pay back the bank? And what does he otherwise do with the money?
August 30, 2007 at 11:24 pm
>>> How does the renter pay back the bank?
He refinances into bigger loan in another bank. Maybe even buy a house with 0% down, still owing money for the rent