A leveraged buyout (LBO) is one company's acquisition of another company using a significant amount of borrowed money (leverage) to meet the cost of acquisition. The assets of the company being acquired are often used as collateral for the loans, along with the assets of the acquiring company. The use of debt, which normally has a lower cost of capital than equity, serves to reduce the overall cost of financing the acquisition. This is done at the risk of magnified cash flow losses should the acquisition perform poorly after the buyout.
Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations.
Reliance Communications Limited (RCOM) was an Indian mobile network provider headquartered in Navi Mumbai, Maharashtra that offered voice and 2G and 3G and 4G data services. In February 2019, the company filed for bankruptcy as it was unable to sell assets to repay its debt. It has an estimated debt of ₹500 billion against assets worth ₹180 billion.
Dynegy Inc. is an electric company based in Houston, Texas. It owns and operates a number of power stations in the U.S., all of which are natural gas-fueled or coal-fueled. Dynegy was acquired by Vistra Corp on April 9, 2018. The company is located at 601 Travis Street in Downtown Houston. The company was founded in 1984 as Natural Gas Clearinghouse. It was originally an energy brokerage, buying and selling natural gas supplies. It changed its name to NGC Corporation in 1995 after entering the electrical power generation business.
Invesco Ltd. is an American independent investment management company that is headquartered in Atlanta, Georgia, with additional branch offices in 20 countries. Its common stock is a constituent of the S&P 500 and trades on the New York Stock Exchange. Invesco operates under the Invesco, Invesco Perpetual, and Powershares brand names.
Nakheel Properties is a real estate development company based in Dubai, United Arab Emirates. The formal name of the company is Nakheel PJSC and it was a subsidiary of Dubai World and a private state-owned enterprise.
Apax Partners LLP is a British private equity firm, headquartered in London, England. The company also operates out of six other offices in New York, Hong Kong, Mumbai, Tel Aviv, Munich and Shanghai. As of March 2024, the firm had raised and advised funds of approximately US$77 billion. Apax Partners is one of the oldest and largest private equity firms operating on an international basis.
Carpetright Limited is one of the largest British retailers of floor coverings and beds. The company is owned by Tapi Carpets.
Interserve was a British construction and support services business based in Reading, Berkshire, which went into administration in 2019 and was formally wound up in 2022. In 2019 the group generated revenue of £2.2 billion and had a workforce of 34,721 people.
Interoute Communications Ltd was a privately held telecommunications company that operated large cloud service platforms in Europe. On 23 February 2018, Interoute was acquired by GTT Communications for $2.3bn (€1.9bn); and the acquisition closed on 31 May 2018.
Mechel is one of Russia's mining and metals companies, comprising producers of coal, iron ore in concentrate, steel, rolled steel products. Headquartered in Moscow, it sells its products in Russia and overseas, and is formally known as Public Joint Stock Company Mechel.
Kier Group plc is a British construction, services and property group active in building and civil engineering, support services, and the Private Finance Initiative.
The Enron scandal was an accounting scandal involving Enron Corporation, an American energy company based in Houston, Texas. When news of widespread fraud within the company became public in October 2001, the company filed for bankruptcy and its accounting firm, Arthur Andersen—then one of the five largest audit and accountancy partnerships in the world—was effectively dissolved. In addition to being the largest bankruptcy reorganization in U.S. history at that time, Enron was cited as the biggest audit failure.
Melrose Industries plc is a British aerospace manufacturing company based in Birmingham, England. It is the parent company of GKN Aerospace. The company's shares are listed on the London Stock Exchange as a constituent of the FTSE 100 Index.
Rhône Group is a global private equity firm with approximately $11 billion of assets under management, specializing in mergers and acquisitions, leveraged buyouts, recapitalizations, and partnerships with particular focus on European and trans-Atlantic investments. Rhône also offers financial advisory services, strategic alliances, joint partnerships, and business valuation services. Rhone Group was listed in 2013 to 2014 by Preqin as the 'Most Consistent Performing Private Equity Fund Manager' based on both its multiple and IRR of all 3 funds in the top quartile ranking.
Elliott Investment Management L.P. is an American investment management firm. It is also one of the largest activist funds in the world.
Haldia Petrochemicals Ltd., often referred to as HPL, is one of the largest petrochemical companies in India. HPL which began commercial production in 1984, has its headquarters located in Kolkata, West Bengal, India. It has a large petrochemical plant based out of Haldia in Eastern India. The company as of 2018 held the position of being the fourth largest player in the domestic petrochemical market and enjoyed a dominant position in Eastern India.
Rothschild & Co is a multinational private and alternative assets investor, headquartered in Paris, France and London, England. It is the flagship of the Rothschild banking group controlled by the British and French branches of the Rothschild family.
Anbang Insurance Group was a Chinese holding company whose subsidiaries mainly deal with insurance, banking, and financial services based in Beijing. As of February 2017, the company had assets worth more than CN¥1.9 trillion. The Financial Times described Anbang as "one of China’s most politically connected companies."
US$10 billion (2011)