Re:Toys 'R' Us Founder Charles Lazarus Dies at 94
by mseebach on Friday March 23, 2018 @06:08AM
(#16656506)
It's just like a mortgage. Even though it's you buying the house, it's in a way the house that ends up owning the mortgage (in many jurisdictions, you can walk away from the house and mortgage, and the bank had no leverage against your person, they can only repossess the house).
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Re:Toys 'R' Us Founder Charles Lazarus Dies at 94
by ssharp on Friday March 23, 2018 @08:09AM
(#16657135)
I was trying to explain what a leveraged buyout was and why a company like Toys R Us had so much debt on its books. After trying to talk through it, I used the mortgage analogy and it made a lot more sense.
Re:Toys 'R' Us Founder Charles Lazarus Dies at 94
by beojan on Friday March 23, 2018 @08:19AM
(#16657193)
No, there the house is collateral.
In this case, instead of the lender simply taking over the acquired company, the acquired company declares bankruptcy and is liquidated.