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A comment on Instant Brands, maker of Instant Pot and Pyrex cookware, files for bankruptcy. Parent comment

Re:Instant Brands, maker of Instant Pot and Pyrex cookware, ... by pavon on Tuesday June 13, 2023 @04:21PM (#36316470)
It is the bankruptcy part that I don't understand the legality of. Parent company pulls a ton of money out of subsidiary, claims bankruptcy, then magically parent company isn't liable for subsidiary's debt?
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Re:Instant Brands, maker of Instant Pot and Pyrex cookware, ... by Zigurd on Tuesday June 13, 2023 @05:11PM (#36317423)
PE isn't a parent company. LBO debt is debt carried by the acquired company. So there is no sleight of hand in bankruptcy. The poison is already in the acquired company's bloodstream.
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Re:Instant Brands, maker of Instant Pot and Pyrex cookware, ... by mikeyouse on Tuesday June 13, 2023 @05:46PM (#36317960)
Yep, all correct. The sleight of hand comes just before bankruptcy when the assets are stripped and sold to a different entity so the debtholders are screwed with worthless assets and are stuck filing longshot lawsuits to recover assets while the ghouls who raided the company invest their ill-gotten proceeds while tying the mess up in court for years.

https://archive.is/LsqUp

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