Southern Cross - heavy debtload legacy from Private Equity Days?

The merry-go-round that has public companies taken 'private' by speculative funds only to see them floated to the public a few years later often leaves companies in a weakened position. Lack of investment, heavy debt loads and unfavorable capital structures mean that the only winners in this game of 'pass-the-parcel' are the insiders. Case in point: Southern Cross Healthcare, Britain's biggest care home provider, was bought by Blackstone in 2004 from another 'Private' Equity firm only to be floated on the public market two years later.

11/12/2010

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