Reply to post: Re: Venture Capitalists

Avaya files for bankruptcy

midcapwarrior

Re: Venture Capitalists

In this case it was more of a leveraged buy out. Load up on debt to buy the company. Load more to make a special pay out to Silver Lake and then hope to go public to start the process over again. The special pay ensures Silver Lake has paid themselves back everything they invested. The market changed before they could find a sucker to pick them up or to go public again.

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