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If the llc declares bankruptcy does meta have to pay the bank for it - or can they buy the assets at fire sale prices?
Meta doesn't actually owe the bank anything in this setup. That would be Blackrock and the other private creditors.
Credit report shows Meta keeping $27B off its books through advanced geometry
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Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#22LOL "The entity is named “Beignet,” presumably because “Off-Balance-Sheet Leverage Vehicle No. 5” tested poorly with focus groups."
It’s a fitting name for Louisiana at least. But this place is next Monroe which is…nowhere near New Orleans.
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#23[flagged]
"None of this is unusual except for the part where Meta designs, builds, guarantees, operates, funds the overruns, pays the rent, and does not consolidate it."
So ChatGPT put this sentence in list form and reordered it a bit. AGI is imminent!
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#24Folks in the comments here begging ChatGPT to teach them how to read
It is so hopelessly depressing. I was wrapt reading it from start to finish and thoroughly enjoyed it as few recent articles at length have been.
And then going to the comments, excitedly no less, to find…this?
Jfc :’(
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#25Can anyone comment about how common this (apparently legal) practice is?
MBAs gotta have something to do.
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#26I’m guessing Meta isn’t the only one doing this
You would guess right, and I have even heard that this sort thing has been standard practice for a long time, without nefarious intent.
The problem is that even standard practice, without nefarious intent, can cause massive financial collapse. If, say, the vast majority of economic growth were being focused into such vehicles, the lack of transparency could make people misanalyze the situation and result in bad valuations that collapse when it all becomes transparent.
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#27There are better articles explaining this: https://www.forbes.com/sites/petercohan/2025/11/25/metas-ai-... and https://www.wsj.com/tech/meta-ai-data-center-finances-d3a6b4...
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#28[flagged]
If the llc declares bankruptcy does meta have to pay the bank for it - or can they buy the assets at fire sale prices?
I have skimmed through the article and if I get the details through all the humor, satire and sarcasm even remotely correct, the major assets are actually the duality of payment obligations and residual value guarantees, both from meta. One could include cost overrun protection at the construction time too.
The "fire sale prices" would be so delicious as to guarantee that the entity(-ies) involved stay solvent as long as meta stays solvent.
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#29Folks in the comments here begging ChatGPT to teach them how to read
The difficulty understanding this piece comes from lack of knowledge about finance and ratings, not from an inability to read. The blog assumes a large amount of financial knowledge which is not common among the HN audience.
Re: Credit report shows Meta keeping $27B off its books through advanced geometry
#30> This treatment is considered acceptable because the people who decide what is acceptable have accepted it. Wasn't that the root of the 2008 crash? The debt spiral was acceptable because people were making enough money in the present that regulators were powerless to advise against it. In a sane world people often go to jail for decades when doing this at pennies on the dollar.
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