Mitt's Bain Capital leveraged buyout problem

Discussion in 'Politics' started by Chris, Dec 4, 2011.

  1. Chris
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    Chris Gold Member

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    In 1992, Mitt Romney was running Bain Capital, a private equity firm. Bain Capital bought American Pad & Paper Co. (Ampad) for $5 million.

    Over the next several years Romney's firm bled the company dry. Hundreds of workers lost their jobs. Stockholders were left with worthless shares. Creditors and vendors were paid less than 50 cents on the dollar. While they were exploiting the company, Romney's firm charged Ampad millions of dollars in "management fees." In all, Romney and his investors reaped more than $100 million dollars from the deal.
     
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  2. imbalance
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    imbalance Silver Member

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    If Romney restructured Washington and laid off thousands of gov bureaucrats, I don't think that would be a bad thing. In fact, it's what the country needs at this point.
     
  3. Chris
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    Chris Gold Member

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    [ame=http://www.youtube.com/watch?v=rKY1a3BPjrU&feature=related]1994 Anti-Romney Ad #2 - YouTube[/ame]
     
  4. USArmyRetired
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    USArmyRetired BANNED

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    Yet after all that, Romney was elected Governor of Massachusetts by the voters.
     
  5. The Rabbi
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    The Rabbi Diamond Member

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    Well, if Romney got elected we would finally have someone with some kind of experience in fixing something.
    American Pad was obviously not a profitable well-run company when Bain bought it. The workers would have lost their jobs anyway.
     
  6. JoeB131
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    JoeB131 Diamond Member

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    Only because the Democrats ran a non-entity against him.

    Ted Kennedy beat him.
    He ducked out of running for re-election because he was trailing potential democrat challengers by double digits.

    And he lost to John McCain. JOHN McCAIN!
     
  7. JoeB131
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    JoeB131 Diamond Member

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    Bullshit.

    AmPad had been around since 1882. They invented the Legal Pad.

    When Bain took over AmPad, their stocks were listed on the Stock exchange, and they had a mere 11 million dollars in debt.

    When Bain was through with them, they had closed half their plants, had racked up 400 million in debt and had to sell off their assets, and their stock was listed as junk bond at .35 a share. The stock market delisted them.

    After they got Bain out of their lives, the company has recovered quite a bit, although not the powerhouse it was.

    AmPad is to Mitt Romney what Vietnam Veterans Against the War was to John Kerry.

    It plays right into Obama's hands.
     
  8. Truthmatters
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    Truthmatters BANNED

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    the people who worked at that factory had no idea what was going on.

    They game back to work after the 4th of july holiday to locked factory doors and a sign on the door saying "YOURE FIRED!".


    That is Mitt Romenys record
     
  9. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    Solyndra. That is Obama's record.
     
  10. Valerie
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    Valerie Gold Member

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    Romney’s Bain Years: Turnaround Specialist-In-Chief | WBUR
     

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