While the full extent of the damage — and what exactly went wrong — remains unclear 11 days after First Brands declared bankruptcy, the stakes were raised on Wednesday night when one of First Brands’ financial partners made an emergency court filing calling for an independent investigation into $2.3 billion tied to the company it said had “simply vanished.” Raistone, the company that called for the investigation, and that had facilitated First Brands’ short-term borrowing, derived 80% of its revenue from First Brands and has already cut roughly half of its employees. Jefferies is facing redemption requests from investors who had money in a hedge fund arm of the bank, Point Bonita Capital, which had a quarter of one of its portfolios — some $715 million — tied to First Brands.
Extrapolate this to the major tech companies rapidly buying X Y Z for ludicrous prices. I think there’s a lot of debt reshuffling that went on to finance a lot of the aquisitions.