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Definition of 'Savior Plan'
When management and employees borrow money to invest in their failing company in an attempt to save it. Essentially, a savior plan precedes a management and employee buyout.
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Investopedia explains 'Savior Plan'
After a savior plan is put into place, one could say that the company is "employee-owned".
This type of plan can fail because of high borrowing costs, which may not be paid back quickly enough to obtain a return on the investment. Also, savior plans do not guarantee that the company will begin to operate efficienctly after the buyout.
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Search results for 'Savior Plan'
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http://www.investopedia.com/articles/financial-theory/08/leveraged-buyouts.asp
... There are many scenarios driving a buyout, but four examples are the repackaging
plan, the split-up, the portfolio plan and the savior plan. ...
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http://financialedge.investopedia.com/financial-edge/0909/Financial-Crisis-Report-Card-One-Year-Later.aspx
... loose, it's the government's job to be the buyer (or savior) of last ... Obama's stimulus
and recovery plan has been generally praised, with leading economists ...
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