BS. This charge is repeated in the video. Yet no creditor is ever named in any of these cases.
First of all, if such a creditor existed, then they would be first in line during any subsequent bankruptcy. Second, if a creditor got burned like this, then no one else would ever step forward to lend a Bain firm any money. And third, by its very nature, Bain Capital is the company putting up the money. Hence the word 'Capital'. Get it?
There is no substance to this lie. None. Zip. Nada. Not only that, it doesn't even make sense. So put it to rest.
Not so, Hoodat. Read the following from Murdoch's conservative paper, the NY Post:
Former Dade CEO Scott Garrett, who managed the business for the first few years after the takeover, said Romney "was far more in tune with what was going on throughout his firm, and even the portfolio companies, than you might expect."Bain reduced Dade's research and development spending to 6 to 7 percent of sales, while its peers allocated between 10 and 15 percent. Dade in June 1999 used the savings as part of the basis to borrow $421 million. Dade then turned around and used $365 million from the loan to buy shares from its owners, giving them a 4.3 times return on their investment.
A Dade executive, who requested anonymity, said he confronted new CEO Steven Barnes after a boardroom meeting within a week of the distribution.
"You really think it's a good idea to borrow, you know, one times sales?" he asked.
"Oh. Yeah. Yeah. You know, that's fine," Barnes responded. "You know companies do that all the time."
The executive then told Barnes, "Well, that'd be like me going out and borrowing the amount of money I make in a year and then trying to pay it off and pay for my house and feed myself and everything else. That doesn't make sense." The executive said he let it drop after that.
In August 2002, Dade filed for bankruptcy. Read more: http://www.nypost.com/p/news/business/ad_mitt_mistakes_jRmd2LHaPIb0bbNn1ZkgaJ#ixzz1jQC1Lm9j