Vince (Login MoxiFox) Von Klumpen Posted Mar 22, 2009 1:27 PM
If the company made those signed deals, the company is on the hook for them. However, if/when the company hasn't got the funds to stay solvent any longer ......... what happens? Too bad/so sad .......... there ISN'T any money there to pay out.
So now you get a 'white knight' riding in to save the company ....
Because the white knight is providing fresh money, the white knight also has all the power to negotiate the bail-out terms. It can say, "no" to such previous arrangements and dictate its own NEW terms.
What am I missing?
It seems to me there was an old-boys network in place where pretty well every administration official "owes" something to every one of the guys promised the bonuses.
They don't wish to "offend" their former "benefactors" for fear of having something exposed ............ so ............ they talk loud to the contrary but quietly work in the handouts anyway.