Olympus Corp in real trouble

Started Nov 8, 2011 | Discussions thread
Richard Briscoe
Regular MemberPosts: 401
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Re: Olympus Corp in real trouble
In reply to MichaelKJ, Nov 9, 2011

MichaelKJ wrote:

At least in the US, when you acquire a company you also acquire its debt and any other liabilities (such as potential losses from shareholder lawsuits for mismanaging their investments). No company is going to even think about buying Olympus right now.

That is why a bankruptcy which clears the slate is frequently necessary for any purchase to be completed. In the case of Olympus, it appears that the company has simply blown through a lot of cash on bad acquisitions and covered it up to protect the individuals involved.

Even if the BOD are sacked along with the management team it will remain to be seen whether the company is solvent or has sufficient to continue developing new products. A complete "house cleaning" will be necessary to restore any degree of credibility to the company.

If the shareholders pursue litigation there may not be will be a mess.

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