[HWR_14]

> It’s no different than a company issuing bonds to buy back its own equity.

Which was illegal until 1982 and could be made illegal again.

[JackFr]

A firm can be capitalized by debt or equity. They can have a public offering to and sell share to retire debt. They can issue bonds and use the money to buy back shares. There shouldn't be a moral component to this.

That being said, it seems criminal to take an enormous management fee while sending a company into bankruptcy.