Question from Right-Wing Jeff (and answer from Hal)

Q.   Name two healthy companies that Bain Capital took over and gutted

Just two.  Signed, Jeff.

A.ARMCO STEEL

Bain Capital acquired this 100+ year old company in 1993, received $36 million in dividend payments after they had the company issue $125 million in bonds, bonds the company would ultimately have to buy back. Bain merged the company with other steel mills and formed GST Steel. By 2001, the company debt had reached $500 million and they filed for bankruptcy. 750 employees were laid off and the federal government (the taxpayers) had to bail out the pension fund to the tune of $44 million.

Final Score – Bain gets $36 million, taxpayers pay $44 million, 750 jobs lost.

AMERICAN PAD AND PAPER (AMPAD)

A successful company that was purchased from the Mead Corporation in 1992 by Bain Capital. The company promptly consolidated 13 manufacturing facilities into 6. Beginning in 1994, AMPAD/Bain Capital began buying up other companies, starting with SCM in 1994, and ending with Shade/Allied Inc. in 1997. In 1999, the company filed for bankruptcy, laid off 1,500 employees and ultimately sold the assets to Crescent Capital Investments in 2003.

Final Score – Bain Capital – Approx $100 million, 1,500 jobs lost

DADE BEHRING

In 1997, Behring Diagnostics merged with a company called Dade International, which was a group of investors, led by Bain Capital. Bain had acquired Baxter International’s diagnostic unit for $440 million. This new merged company became the largest company devoted to diagnostics, with annual sales of over $500 million.

During this period, however, Dade/Behring was piling up debt, ultimately resulting in filing for bankruptcy in 2002, laying off 1,700 American workers. The company reorganized and rebounded, but the jobs never did, at least not here in the United States. Dade Behring employs over 6,000 people worldwide.

Final Score – Bain Capital – Approx $240 million in profit, 1,700 jobs lost.

STAGE STORES

In the 1980′s Bain Capital and Mitt Romney partnered with junk bond king Michael Milken, deemed by many as the “real” Gordon Gecko, the ruthless character from the movie Wall Street, and Milken’s company Drexel Burnham Lambert to form the retail chain Stage Stores, based in Houston, TX.

Milken and his company were under federal investigation at the time for their trading practices, but that didn’t bother Romney or Bain, who were both looking for a major payoff. Stage was created by acquiring hundreds of small retailers and combining the operations.

By 1997, Bain had sold all of its shares in Stage, pocketing $175 million in profit. In 2000, with approximately $445 million in long term debt accrued, Stage filed for bankruptcy and began closing stores and consolidating operations.

Final Score – Bain Capital – $175 million in profit, 5,000 jobs lost

http://www.examiner.com/article/companies-that-bain-capital-has-outsourced-or-destroyed

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5 Responses to Question from Right-Wing Jeff (and answer from Hal)

  1. P.D.Bird says:

    Who really cares? Fuck right wing jeff and the horse he rode in on. Stop giving them attention Hal,start concentrating on solutions,not arguing pointless arguments with assclowns.
    Jeff,salinas joe and the rest are humorus at best,entertaining,but they are just distractions from our goals. They are gossip. that is all. not gonna change them,and even if you can change one of them,u are wasting our time with these clowns
    And alienating fred in the process.Fred is long time friend and supporter of you and the station. Remember that HAl and work from there..Radiate outward from ur base. Only “reasonable conservative” on KRXA should be Fred,thats as far right as we should be going.
    Stop dicking us over and be an agent for change.
    Please forgive me….Namaste

  2. peter casey says:

    Jeff just keeps PROVING how “stupid” he is the more he communicates. Makes ALL Righties look bad!

    • P.D.Bird says:

      This is a fact. But still waste of our time. We need news,facts information to march too. Hal does not seem to care,tell us point blank that we can choose to listen to other station.

      That’s just wrong,we have dedicated time,emotion,and love to this station.
      Not to have it taken over by right wing talking points.

  3. Shade says:

    Jeff might not have considered these companies “healthy”. Nowadays “healthy” companies must have an army of financial lawyers & a “poison pill” corporate structure to help sour the appetite of potential corporate raiders.

    What attracts a corporate raider (such as the Freudian sounding Bain Capital) is when a company’s net profits are low compared to their net assets (including their pensioner’s retirement funds). This situation is sometimes found in mature or privately held companies. The corporate raider tries to buy the company based on the value of the company’s projected profits when what they are really interested in is the value of the company assets. Once purchased, the raider will typically sell, merge, or encumber the company’s assets with unnecessary debt, then extract this money from the company in the form of “fees” or other money transferred to the raider.

    At this point, the corporate raider will usually no longer be interested in owning the target company & the company will again be spun out on its own. Going independent & now highly encumbered with unnecessary debt usually does not work, especially since such companies often initially became a corporate raider’s target due to their “under-performing” the market (in terms of generating profits). Some like Jeff might argue that the new company is better off for the experience, as unlike before, they are now forced to cut costs (payroll), export their U.S. jobs, improve their return on investment ratio, & otherwise run more efficiently. In reality, what often happens is a bankruptcy. This further screws the company’s employees, pensioners, & also those that got tricked into loaning the company money against assets that now must be disposed of at fire-sale prices.

    Thank God that the U.S. has institutions of higher learning that teach this stuff. Thanks to them we now often use the extreme profitability of bloodsucking corporate raiders & investment bankers as the benchmark to which we compare the profitability of all other companies & thus force them too to make short-term decisions that hurt long-term viability & profitability! This type of business practice is so much more lucrative (for a few) than earning an honest living “the old fashion way”. And lets once again draft Mick Romney, one of the worst blood-sucking corporate raiders, to again run for President so as to help U.S. businesses & investment bankers build an even more powerful China at our nation’s expense.

  4. The Lesser Rusty says:

    Bird, Casey +1. Powerful lesson, Shade. That is the nut of this business. These raiders are literally muggers operating in the open. Business thugs that build nothing – take, rape, eat, move on.

    I’d prefer to NOT hear long debates with the yapping yard dogs of these thugs. Just take the call, get the delusion report, and move on.

    That’s one reason I tune out Hartmann – can’t stand to hear the top-of-the-hour interview with some out of touch or paid off douche bag.

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