Jul. 12 at 9:31 PM
$KHC Dummies, it is not simply about ability to pay debt or not. It is the leverage debt holdees have over entire restructuring processs. The minimum 25 billion equity condition itself makes its impossible to spinoff a new company without lenders approval. The debt holders would be central players in this process, not passive observers. Debt holders agreed to lend KHC ~
$20 billion based on the collateral and earning power of the entire company. A breakup removes a huge portion of that underlying business that guarantees their loan. They would never allow the company to simply give away half of its assets without their explicit consent and a new deal.
Also what do you do with 21 billion goodwill? Even after the 15.4 billion write-downs in 2019, KHC still carries a significant amount of goodwill and other intangible assets on its balance sheet.
