Essentially, it is a chain of debt obligations that is only as strong as its weakest link.
Smaller manufacturers and service companies, such as Daiei, Japan's biggest supermarket chain, took on debt to expand and are now in trouble.
The debt-free chain, roughly 50% company owned and 50% franchised, earns very high management marks, too.
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During its evaulation of its debt, the chain will close some or almost all of its 3, 000 stores in the United States.
In 1996 Donald took over floundering Pathmark, a privately held, moneylosing 143-store chain with good real estate and a crushing debt load.
With trillions of dollars in debt acting as a ball-and-chain for much of Europe, the U.S. and the rest of the developed world, must detoxify their balance sheets before hitting the ground running.
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Now Redstone says he has offered to buy Shari's 20% stake in National Amusements, or to swap it for the theater chain, if she's willing to assume some debt on that real estate.
High interest rates caused Irish banks to cease selling sovereign debt bonds, a move that some say may cause a chain reaction to other EU nations like Portugal and Spain.
When the U.S. Treasury and Federal Reserve Board decided to guarantee bank debt and inject capital into our major banks, it started a chain reaction in several sectors of the bond market.
The struggle to make a profit and reduce debt is still being waged at some big companies, including Daiei, once the biggest supermarket chain, Japan Airlines, Sanyo Electric, Rakuten, the biggest internet shopping mall, and Softbank (though the last could be cushioned by its large holding of Yahoo Japan shares).
The chain sprung to life in August 2005 after the sale of its Canadian unit took about a billion dollars of debt off its books and swept Canada head EricClausEric Claus into the chief executive role.
There's a risk that drugstore chain Rite Aid, which accounted for 13% of McKesson's revenue last year, may default on its debt.
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