In 2006, Mitt Romney officially announced his run for president of the United States.I hope they sink without a trace and take Romney and all the wingnut gasbags down with them.
Also in 2006, Clear Channel, the largest radio network in the world, announced that it was being purchased and taken private by Bain Capital, the one time (and perhaps still?) Mitt Romney-controlled private equity fund.
Early this year, largely as a result of the Bain takeover, Clear Channel was in debt more than 19 billion dollars. Last March, Bain Capital took an additional 2.2 billion dollars out of Clear Channel, so the debt is now greater than 21 billion.
Big debt comes with harsh deadlines. Clear Channel has to come up with $500 million in debt payments by the end of 2013, a payment of $1.1 billion due in 2014, and then a much larger payment of $12 billion due in 2016.
So Clear Channel has since decided to restructure $2 billion of its debt. This has been described as "kicking some debt down the road", meaning that all of the 2014 payments, and a small part of the 2016 payments, will now be due in 2019. The significant drawback to rescheduling this debt is higher interest payments, which have been estimated at an additional $100 million per year. And Moodys says that more of the 2016 debt will need to be rescheduled.
Now think about this circumstance. Mitt Romney's Bain Capital bought Clear Channel and financed their purchase with deep debt. Their corporate austerity requirements have forced layoffs, the most recent of which occurred on March 30 of 2012. That was just two weeks after Bain Capital raided Clear Channel's assets by forcing a two billion dollar dividend payment, paid for with a loan arrangement which prompted lawsuits. Just six months later, Clear Channel (as one of Bain Capital's piggy banks) finds it necessary to seek two billion dollars in debt relief (imagine that!) by "kicking the [debt] can down the road".
Wednesday, October 17, 2012
Big Trouble in Limbaugh Land
Good. Kos, many links.
Posted by Gordon at 13:54