I’m sick of the excuses for why people can’t pay their student loans. I’m not talking about people who’ve done something shady, I’m talking about people who, for whatever reason, can’t pay their loans.
It’s tough. Almost everyone Ive ever talked to about this has a story of how they were recently forced to pay off their student loan. Some are just outright bankrupt, others are very close to getting into serious trouble, and some are in the process of going to default. As a result, the banks have been forced to close all of their doors to new, potential applicants.
Like a lot of the other news stories you read, the bankruptcy of mc sports is a result of a big merger with another school. The merger was a move to avoid paying their debts, and the reason they agreed to drop the merger was because the bank that owned the debt owed to them wanted to make sure they didn’t default on their debt.
At the same time, mc sports was in a merger with a school that would likely be in danger of going into bankruptcy. The school was run by the financials of the guy who created mc sports (they apparently have the same name as mc sports) and was headed by the guy who gave the game away as a “free” game for the public.
Now that we’ve gone over mc sports’s history, it becomes clear that the merger agreement was simply a way for the bank to get a better deal on mc sports’s debt and to use the merger as a way to force them to drop the merger.
So yes, mc sports is dead. It’s like a zombie apocalypse.
the bankruptcy is actually the result of a merger. The merger between mc sports and mc bank was simply a way to get a better deal on mc bank’s debt. The bank still owns mc sports, but now they have all this debt, and they still can’t pay for the merger with mc bank. So they merge with mc bank to get some of their debt off of mc sportss balance sheet.
To be fair, the merger was, at its core, a merger between two companies that have been growing in their respective fields for awhile now. Their merger was not just to get more debt off of the balance sheet. It was to allow for the merger to be more profitable. But since they merged into a single company, the merger has not been able to get as much debt off of it as it could have, and as a result they are still growing at a slower rate.
It is also, by the way, the second time that a company is in bankruptcy. But because they are in bankruptcy, they can’t actually go out of business. So by default, the company is now growing at the same rate as it was before they went into bankruptcy. And now they are growing at a slower rate than they could have been if they were in bankruptcy.
This is a very good thing. Once a company goes into bankruptcy, its future is not as obvious as it was before. This is especially true if the industry is booming and the company has cash to burn. But in the case of mc sports, they have so many debt obligations that they cannot run out of cash, making it impossible for them to expand.