Home -> Law Blog Directory -> Criminal Law Blogs -> Grits for Breakfast

Criminal Law

: Grits for Breakfast

Geo Group's purchase of Houston private prison company leaves it highly leveraged

I noticed recent news that the Geo Group, a private prison company which has been expanding aggressively in Texas, saw its earnings increase last quarter not because its operations became more profitable but because they purchased yet another competitor, this time the Houston-based Cornell Group.Geo's boosted earnings, though, also bring with them nine figures in additional debt for a company already leveraged to the hilt. In 2007, I'd quoted from their 10-K which informed us that: the company has a "significant level of indebtedness that could adversely affect our financial position," mostly spent to buy competing private prison companies. And how might this debt "adversely" affect Geo? First and foremost, the company says, it could "require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness...continue to full post

Full post as published by Grits for Breakfast on August 15, 2010 (boomark / email).