This guy is right but it exposes a much more serious issue.
PE is the creditors’ biggest customer.
They can’t say no.
It’s tantamount to killing their business.
Yes, this AI force majeure clause is especially insane.
But PE dictating terms and bullying creditors has been going on for a while now- long before AI arrived on the scene.
The creditors play ball because they don’t want to lose the business.
Companies get over levered and the PE firm does not pay the price.
The solution? Make the debt PE firms put on a company recourse to the firm.
Take some responsibility when things don’t go as promised.
The rest of us are.