The relentless development of the Magnificent Seven makes it simple to overlook that many tech companies are unprofitable and struggling. with their debt burdens. Now collectors within the house are turning in opposition to one another in an try to be repaid.
Alvaria Inc., GoTo Group Inc. and Rackspace Know-how Inc. is amongst a variety of troubled tech corporations that this yr agreed to restructuring offers that supply choose collectors higher phrases for debt swaps than others, a course of typically seen as a type of “creditor-to-creditor violence.”