Asset
Stripping ex Wiki
Asset stripping is a method in which a
company or
an individual, known as a
corporate raider,
attains
control of another company, and then auctions off the acquired company's
assets. The sold
assets are often used to repay the debt of the corporate raider, which may have
been increased due to the acquisition.[1]
The process of asset stripping is utilised by corporate raiders in order to
repay the debts they may have, whilst increasing their
net worth.
A company that may become susceptible to asset stripping is a company whose
individual assets are worth more than its collective net worth.
The term is generally used in a pejorative sense as such activity is not considered productive to the economy. Asset stripping is considered to be a problem in economies such as Russia or China that are making a transition to the market. In these situations, managers of a state-owned company have been known to sell the assets which they control, leaving behind nothing but debts to the state.
Sale And Leaseback ex
Wiki
QUOTE
Leaseback, short for sale-and-leaseback,
is a
financial transaction, where one sells an asset and
leases it back for the long-term; therefore, one continues to be able to use
the asset but no longer owns it. The transaction is generally done for fixed
assets, notably
real
estate and planes, trains and automobiles, and the purposes are varied,
including financing, accounting, and taxing.
UNQUOTE
The Wiki makes
heavy weather of this one. Perhaps the writer is not very competent or is trying to
obscure the truth.
Sale-and-leaseback
converts assets into cash which can then be used, moved, stolen, whatever.
It makes sense in the short to medium term. Eventually the rent outweighs other
advantages.
Asset Stripping Pays Off Big Time - For The Perpetrators
[ 21 January 2018 ]
QUOTE
[ The ]
Commons education select committee has written to academies minister
Lord Agnew expressing concerns about a ‘lack of transparency and
accountability’ surrounding MATs
Schools do not always benefit from joining multi-academy trusts (MATs) because they do not receive value for money and are “asset-stripped” when a trust fails, an influential parliamentary committee has told ministers.
The warning comes in hard-hitting letter to the academies minister Lord Agnew, from the chair of the Commons education select committee, Robert Halfon. Writing on behalf on his members, he sets out major concerns about MAT membership for schools and calls for the trusts to be subjected to greater accountability.
“We are particularly concerned by the extent to which failing trusts are stripping assets from their schools,” the letter says. “It is not clear to us that all schools are benefiting from joining MATs, or that trusts are providing value for money.”
The letter calls for a “more robust system of oversight” to
prevent such transfers of assets.
UNQUOTE
The whole thing of Privatization is a series of
multigigabuck Boondoggles being used to defraud
the tax payer.. It is not just the
Tories. Why do you think that Blair
is a multimillionaire, if not billionaire? He has his fingers in the till up to
the armpits. See Privatization and Blair
on the point.
