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Corporate Recovery by Employees?

  • 18-02-2009 12:09am
    #1
    ninty9er
    Registered Users, Registered Users 2 Posts: 9,366 ✭✭✭


    Not that I'm in a position to do so myself, but why have options such as employee buyout not been spearheaded by unions in cases such as Waterford and Sasha? Surely these companies have fair values far below their book values that would allow loans to be raised on them.

    Is it because they secretly also believe that the companies are basket cases while outwardly pursuing a different agenda, that they don't think the workers are competent, or that the workers becoming the employer means unions are pointless and their fat salaries will go nowhere.


Comments

  • #2
    shoutman
    Registered Users, Registered Users 2 Posts: 6,924 ✭✭✭shoutman


    Well I'd say that getting a bank loan in the above case must be near to impossible otherwise, surely you would have businessmen with cash in hand offering to take over the company....


  • #3
    antoinolachtnai
    Registered Users, Registered Users 2 Posts: 9,815 ✭✭✭antoinolachtnai


    Management would be better placed to do the same thing. Unions don't really have that set of skills.

    The problem may be that these companes are not profitable or attractive. It's just not a good time to go into fasion and luxury goods.

    You need equity capital, not just loans. The risk is very large. This isn't like buying out a cash-generating company.


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