Comments on: Hilton’s LBO unwinds A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: Brad Ford Thu, 17 Sep 2009 14:15:23 +0000 The restructuring is quite logical.

Example: (I made up the dollar amounts and haircut percentage)
1. Convert $100m in loans into $80m in bonds;
2. The government takes a 20% haircut;
3. The new lenders take less risk;
4. Despite having their equity wiped out in the original deal, the “owners” end up with new equity and keep the properties.

Everyone wins – except Uncle Sam.

By: Duff Samoa Thu, 17 Sep 2009 03:11:49 +0000 Reminds me of the anecdote from this article: ept-14-2009/nice-work-if-you-can-get-it. php

Deal was crazy, yes, but crazy good also…