Shareholder loans, Private Equity and Distressed Investing - change needed

Some call Private Equity and their close cousin, distressed debt investors, nothing but locusts that are out to make a fast buck. This judgment may be overly harsh, but given the short time between investment and exit that is the hallmark of some deals it may be difficult to disprove this judgment.
One are of possible abuse, however, is the treatment of shareholder loans when an investment hits the buffers. Loans from major or especially controlling shareholders should be treated as subordinate to all other claims, pensions, wages, trade creditors and tax authorities.
In the case of Private Equity 'Funds' it should also not be possible that the Fund washes its hands of an investment that had gone sour. The Fund should be treated as a going concern, much like a Conglomerate. This would instill a much higher level of commitment from the PE investors and prevent overly risky investments on the basis of 'heads we win, tails you loose'. (22-Oct-2017)
Sunday Times (Paywall)

Toys 'R' Us - the REAL Culprits are not mentioned

The 'Private' Equity firms that gamble with the Public's money on the basis of 'Heads we win, Tails you lose' are the real culprits. Rather than put real sweat money into a business they load it with tons of debt - to the max - and hope for the best (a rising market makes everyone a genius). Shame on KKR and Bain Capital, shame on the regulators that neglect the unfair advantages that 'Private' Equity firms get (tax, accounting, liability, employee relations).
(20-Sept-2017)
(Bloomberg)

Absurd costs of Lehman bankruptcy

News that advisors working on resolving the Lehman bankruptcy raked in nearly $600 Mio through 2009 demonstrates that the bankruptcy process is in dire need of reform. The lead consultant seems to have gotten away with charging more than $ 1 Mio for each of its members of staff working on the case. Who protects the creditors? who approves these outrageous fees?