Re:Why privatisation has been a costly failure in Britain
by youngtaff on Tuesday July 11, 2023 @09:58AM
(#36681063)
No the business doesn’t have to make a profit it just needs enough revenue to service the debt
Of course what happens is many business geared this was don’t make a profit, fail their banking covenants, interest on the bond rises and eventually they go bust leaving lenders out of pocket the fund in the money with the dividends
Of course what happens is many business geared this was don’t make a profit, fail their banking covenants, interest on the bond rises and eventually they go bust leaving lenders out of pocket the fund in the money with the dividends
It’s happened to many PE owned businesses