Today's
New York Timeshas two terrific articles about the profits that were made, and the damage done, via debt-financed buyouts. One article focuses on the Simmons Bedding Company (think mattresses), which was bought out by one private equity company after another, with the result that the company is now buried in billions of debt and is filing for bankruptcy. PE managers made off with millions, while bondholders and employees are screwed. The second article (by David Carr) is about a similar scenario at the Tribune Company, which has $8 billion in debt, has laid off thousands of employees, and is in bankruptcy—but its top managers look like they're going to collect $66 million in bonuses. Here they are:
Profits for Buyout Firms as Company Debt Soared
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Of Layoffs, Bankruptcy and Bonuses
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