Search Results for: Debt

A Business Journalism Classic: Inside the Multibillion-Dollar Takeover Battle for RJR Nabisco

Everyone in the room knew about leveraged buyouts, often called LBOs. In an LBO, a small group of senior executives, usually working with a Wall Street partner, proposes to buy its company from public shareholders, using massive amounts of borrowed money. Critics of this procedure called it stealing the company from its owners and fretted that the growing mountain of corporate debt was hindering America’s ability to compete abroad. Everyone knew LBOs meant deep cuts in research and every other imaginable budget, all sacrificed to pay off debt. Proponents insisted that companies forced to meet steep debt payments grew lean and mean. On one thing they all agreed: The executives who launched LBOs got filthy rich.

“The wolf is not at the door,” Johnson said. No corporate raider was forcing him to do this. “This is simply the option that I think is best for our shareholders. I believe it is a doable transaction, and it can be done at prices much higher than the present stock price. We’re not far enough along this road to make firm conclusions or make a proposal at this point, though.”

Johnson stopped a moment and looked at each of the directors: mostly current and retired chief executives, their median age was sixty-five. They had given him a free hand running RJR Nabisco, and hadn’t objected when he wrenched it from its century-old North Carolina home and transformed it into a monument to nouveau-riche excess. But they had struck down his predecessor for lesser transgressions than the one he was now committing.

“I want you to understand one thing,” Johnson continued. “You people will have to decide. If you think this isn’t the answer or there’s a better idea, there will be no hard feelings. I just won’t do it. There are other things I can do, and I’ll do them. We’ll sell food assets. We’ll buy back some more of our stock. I have no problem walking right back upstairs, going to work on plan B, and no hard feelings.”

Silence.

Vernon Jordan, the civil rights leader cum Washington lawyer, was the first to speak. “Look, Ross, if you go ahead with this thing, there’s a real likelihood this company is going to be put in play. Somebody might come along and buy this company for more than you can pay. You might not win. I mean, who knows what could happen?”

—From 1989’s Barbarians at the Gate: The Fall of RJR Nabisco by journalists Bryan Burrough and John Helyar. Their bestseller followed the multiple players involved in the 1988 bidding war for the tobacco and food giant, which resulted in its $25 billion leveraged buyout, at the time the largest in history.

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Everything You Ever Wanted

Jillian Lauren | Plume | May 2015 | 11 minutes (2,636 words)

 

Below is an excerpt from Jillian Lauren’s memoir, Everything You Ever Wanted, as recommended by Longreads contributor Sari Botton. Read her interview with Lauren about memoir and family.

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In a one-bedroom apartment in West Orange, New Jersey, late winter 1973, my mother, Helene, is home in the middle of the day, dancing to the Hair soundtrack while cleaning the house, when she gets a call from an old college friend named Jillian. Jillian married a fertility specialist after graduation and lives in Chicago now. My mother called her years before, seeking advice. Helene is on a list for a study in experimental fertility drugs, but the process seems to be dragging on forever. After nearly four years of trying to conceive, her diagnosis is unexplained infertility. Read more…

The Mountain Carver

Parviz Tanavoli. Photo by Kamil Bialous

Nadim Roberts | Maisonneuve | Spring 2015 | 12 minutes (2,885 words)

 

The following Longreads Exclusive comes from journalist Nadim Roberts and Montreal-based Maisonneuve magazine.

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One morning in March 2014, shortly after returning to his home in Iran, sculptor Parviz Tanavoli awoke to the sound of his daughter’s screams. About twenty men had broken the locks on his front door and entered his house. It looked like the clumsiest art heist in history, but this ragtag group worked for the municipality of Tehran. They were there on strict orders to confiscate Tanavoli’s artwork. Read more…

Four Stories About Disordered Eating

(TW: eating disorders, weight loss, body image.)

No woman I know has a 100 percent healthy relationship with food, with eating. Our childhoods deny us. We see the furrowed brows of our moms and our sisters; we hear the offhand comments about the women on TV or read headlines in Impact font on the magazines at the grocery checkout. Even in the most well-intentioned comments, there is a veiled threat. “You look so thin.” “I could never wear that.” “Have you lost weight?” You don’t always look this good. Careful, or you might not be able to wear that one day. You were fat before, and fat is the enemy. I’ve met many people who would say they’ve had experiences with “disordered eating”—I’m one of them. I never binged or purged, I never purposefully starved myself, but in college, eating fell by the wayside. I was depressed and overworked, and food didn’t seem important.

I think many of us have experiences with disordered eating, subconsciously or not. According to the National Association of Anorexia Nervosa and Associated Disorders (ANAD), 95% of those with eating disorders are between 12 and 25 years old. That’s middle school, high school, and college, right there. That’s the first few years out of college when many of us (myself included) are negotiating how to cook, what snacks to bring to our office jobs, where we can afford to buy groceries despite thousands of dollars in student debt.

I’ve gained weight. Even though I identify as a body-positive feminist, I lament my fat rolls to my boyfriend. I cry and tell him I’m the fattest one in my friend group (as if there was something wrong with that!). As though my body is quantifiable through a number on a scale or the fit of my old jeans. I can buy new jeans. I can learn to love my body. Read more…

The Dolphin Trainer Who Loved Dolphins Too Much

Ashley Guidry with Sandy, a wild-caught bottlenose dolphin, at Gulf World.

Tim Zimmermann | Longreads | April 2015 | 25 minutes (6,193 words)

 

Panama City Beach, Florida is set on the alluring waters of the Gulf Of Mexico, in northwestern Florida. It’s a town of cookie-cutter condos and sprawling outlet malls, built almost entirely on the idea that blazing sun, a cool sea, white sand beaches, and copious amounts of booze are an irresistible formula for human happiness (or at least a pretty damn good time). Everything about the place—from the ubiquitous fast food, to the endless chain stores, to the Brobdingnagian miniature golf courses—is designed to anticipate and then slake the vast and relentless array of human desires.

Prime among the entertainment offerings is Gulf World Marine Park. It sits on Front Beach Road, the main drag that parallels the seafront, and promises sun-addled or bored families a respite from the nearby beach. By day you can swim with dolphins (“guaranteed”) or watch them perform the standard flips and tricks in a show pool, check out the sharks and stingrays, or watch the sea lions act goofy. By night you can watch “Illusionist Of The Year” (it’s not clear who made the designation) Noah Wells unleash his “Maximum Magic.” “It’s Always Showtime At Gulf World” says the marketing department. And that’s true: The entire place shuts down for only two days a year (Thanksgiving and Christmas).

Gulf World is not SeaWorld; it’s much smaller, less expensive, (though a family of four will still fork over $96 just to get past the gate), and there are no killer whales. But it is more typical of the 32 marine parks that keep dolphins and do business in the United States, and it’s these local parks which happen to house the vast majority of the captive dolphins (according to Ceta-Base, which tracks marine parks, there are currently some 509 dolphins at marine parks in the U.S.; about 144 are located at SeaWorld). If SeaWorld is the Ringling Bros. and Barnum & Bailey when it comes to marine mammal entertainment, Gulf World is one of the many small, local carnivals that do a pretty decent trade out of the limelight. And Gulf World happens to be where Ashley Guidry—a brassy blonde with minimal experience, and a simple application accompanied by a Polaroid—happened to land a job in April 2001, at the age of 27. Read more…

Escape from Baghdad!: Saad Hossain’s New Satire of the Iraq War

Saad Hossain | Escape from Baghdad! | Unnamed Press | March 2015 | 23 minutes (6,311 words)

 

Below are the opening chapters of the novel Escape from Baghdad!, by Saad Hossain, as recommended by Longreads contributor Dana Snitzky.

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A NOTE ON THE GLOSSARY AT THE END

There is a glossary of mostly factual terms and names at the end of the text (“factual” being a relative idea open to loose interpretation (“loose interpretation” meaning we’re aiming for a 50% chance of something on the page tallying with someone else’s verified opinion.)) So, if you find yourself wondering: Who’s Moqtada Al-Sadr again? Or what does JAM stand for? Or, bless you, IED? Just refer to the helpful, mostly factual glossary. Read more…

Buried Alive in a Grain Silo

Illustration by: Kjell Reigstad

Erika Hayasaki | December 2014 | 2,554 words (10 minutes)

 

Four years ago, Erika Hayasaki learned about the death of two young men in a corn grain bin accident in the Midwest. Over the next two years, while pregnant and later with her then-six-month-year-old daughter and husband in tow, she left her life in Los Angeles to visit Mount Carroll, Illinois, population 1,700, to capture the story. Her interest, however, wasn’t so much in rehashing the deaths of the two young men, but in telling the story of the survivor, Will Piper, who nearly died trying to save his friends from the deadly pull of the grain bin, and whose life took a surprising turn after the accident. The following is an excerpt from Hayasaki’s story, Drowned By Corn, which describes the lives of the young workers before the accident. Read more…

The U.S., China and the ‘Financial Balance of Terror’

Photo by Robert Baxter

This month, Britain, Germany, France, Italy, South Korea, and a handful of other U.S. allies announced plans to join the new China-led Asian Infrastructure Investment Bank, despite American pressure not to. The multilateral fund is essentially China’s answer to the World Bank and the Asian Development Bank, organizations where the U.S. has long had more influence than China. China has the world’s largest foreign exchange reserves—around $3.8 trillion in December—and wants to use some to fund infrastructure development projects in Asia. It’s clear enormous investment there is necessary. It’s also clear the U.S. is concerned the AIIB—and other new China-backed lending institutions—will weaken its influence. Below is a bit of background from the December 2009 Foreign Policy excerpt of Brad DeLong and Stephen Cohen’s prescient book The End of Influence: What Happens When Other Countries Have the Money:

Proverbs 22:7 instructs us: “The borrower is servant to the lender.” But the lesson requires some exegesis to fit smoothly into context. The burden of the U.S. foreign debt may be better explained by the oft-repeated Wall Street wisecrack, which we repeat: When you owe the bank $1 million, the bank has got you; when you owe the bank $1 billion, you’ve got the bank.

Neither side can walk away; we’re locked. The debt binds China especially and other governments that have the money. Selling the debt would send the dollar way down and thereby destroy the value of their dollar holdings and severely damage their economies’ massive export-based sectors. Worse yet, sell it for what? Their “reserves” are so huge that there is nothing else they can hold them in, not at that scale. From a Chinese viewpoint, it’s exasperating.

The U.S.-China economic imbalance has forced the two powers into a very intimate and not very desired embrace, something Lawrence Summers once called a financial balance of terror. This is all to the good: The two powers must learn to work as partners, and not just in economic matters — global warming and global order also need positive Sino-American cooperation, and they are much more important long-term issues. Sino-American partnership, in managing the complex mess of their imbalanced economic codependency, can constitute a good beginning for managing the utterly unhinged problems of world balance and order. We have no acceptable choice but to get good at it, and that will take some doing on both sides.

As money alters power relations, the United States is not simply becoming dependent — but it is no longer independent, either. That is a major change. And China is no longer helpless and cowed in face of the superpower hegemon; it has got a grip on it. Indeed, while the world peeks in, the two countries are realizing that they have thrown themselves into an intimate economic embrace with, to say the least, very mixed feelings.

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Meals Behind Bars: A Reading List

Alcatraz Dining Hall by Carl Sundstrom. (Public Domain)

Food is everywhere — we eat at home, at work, at school, on the go, and while traveling. Many of us are able to eat what we choose, when we choose; for some, deciding what to eat, obtaining it, and preparing is enough of a burden that we’re turning to meal-replacements like Soylent in such numbers that orders are backlogged for weeks. That all changes in jail, where you eat what you’re given — or you don’t eat at all. Among the many freedoms prison limits, where does losing the ability to choose the timing, quantity, and, most importantly, flavor of your food rank? Pretty high.

Three of these pieces look at what mealtime is like on the inside, from an examination of chow hall food to stories of inmates’ ad-hoc cell-made meals to an in-depth look at a commissary food that’s both dietary supplement and currency for thousands of inmates. A fourth adds a different dimension, revealing how some of the foods on our own tables are the product of prison labor.

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Interview with a Torturer

S-21. Photo by lecercle

Rithy Panh with Christophe Bataille | Translated by John Cullen | The Elimination: A survivor of the Khmer Rouge confronts his past and the commandant of the killing fields | Other Press | February 2013 | 44 minutes (12,355 words)

Below is an excerpt from the book The Elimination, by Rithy Panh, as recommended by Longreads contributor Dana Snitzky. Read more…