Three years ago three private equity firms piled their debts onto the books of AA and Saga. This created the need for large interest payments on the debt; this in turn reduced profits. A crisis was created which led to 2,800 job losses and pension cut backs.
Which are the laws that allow the recycling of debts from private equity firms to other firms they have just taken over? Who are the private individuals who place capital into private equity firms in the first place? Do the individuals even pay much tax? Are they non-doms? Why do these private equity firms debts in the fitrst place? Have they made bad investment decisions? If so, why do workers have to suffer for the mistakes of financiers?
What to do? Newspapers should name and shame, not only the private equity firms, but also the individuals who invest capital in them.