alt Hacker NewsThe lenders are taking the losses.
Because most businesses take out loans for legitimate reasons. Banks usually charged PE owned companies significantly higher rates for their loans to address the risk(used to work at a PE owned company and we paid 4x prevailing market rate) so PE firms go to great lengths to hide their ownership.
It seems like a lot of lenders should be sued for irresponsible investing then. How much interest can you charge when you get so little of the actual capital back? Is it 100% or more?