[dasudasu]

They approach a bank, or issue some bonds, and it goes something like: "Lend us 1 billion to acquire this company. We'll pay the interest from the operating income. It will also be secured against the assets of the company."

So from the point of view of a bank or bond-holder, it's not such a bad deal if the company survives. It's not a bad deal either for the past owner who does cash out. Then, after the acquisition, they put the debt on that company's books because they were technically costs incurred from that company, and there is nobody to stop them anyway.