Under Romney, Bain Made Money While Companies Went Bankrupt
Workers lost jobs, companies failed, all while Bain made money.
Cambridge Industries, an automotive plastics supplier whose losses had been building for three consecutive years, finally filed for bankruptcy in May 2000 under a mountain of debt that had ballooned to more than $300 million.
Yet Bain Capital, the private equity firm that controlled the Michigan-based company, continued to religiously collect its $950,000-a-year “advisory fee” in quarterly installments, even to the very end, according to court documents.
Seven companies went bankrupt, but that doesn’t mean Bain lost money.
In at least three of the seven bankruptcies, however, companies appear to have been made more vulnerable by debt taken on to return money to Bain and its investors in the form of dividends or share redemptions.Click here for reuse options!
Copyright 2012 Liberaland