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re: Toys R US Collapse Impact on Real Estate (Update: Bye Bye)

Posted on 3/15/18 at 1:08 pm to
Posted by LSUFanHouston
NOLA
Member since Jul 2009
37185 posts
Posted on 3/15/18 at 1:08 pm to
quote:

I might be wrong, but I thought paying too much was the business plan. Way too much debt, lots of percentage-based fees, sell assets and make more fees, and watch it all go away and move on to the next future corpse.


The whole idea with an LBO is that the buyers actually "pay" very little. All the money comes from others.

The debt holders are gonna take a bath here, but even they got higher interest rates, and will get some cash out of the liquidation.
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