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Nairaland Forum / Nairaland / General / Politics / Special Purpose Vehicle, SPV, Isn't Always Created To Commit Financial Fraud. (484 Views)
You Acted Like An Errand Boy: Court Dismisses Keyamo's SPV Suit Against Atiku / SPV Allegation: ‘We Will Take Care Of You’— Kwakwanso Woos Atiku / #AtikuGate: Mr SPV, A Leopard Cannot Change Its Skin - Keyamo To Atiku (2) (3) (4)
Special Purpose Vehicle, SPV, Isn't Always Created To Commit Financial Fraud. by Ayietim(m): 12:14am On Jan 20, 2023 |
What's the primary job of every entrepreneur? Take profitable risks, do everything legitimate to at least preserve capital when profit can't be made. This job wouldn't be done when a business survives the volatile early stage, breaks even, enjoys profitability for few years and then goes bankrupt as a result of venturing into risky ventures. The going concern concept would be defeated. So, what long term business survival options do some entrepreneurs pick to preserve their assets when they go into volatile ventures? One of them is the Special Purpose Vehicle (SPV) also known as Spechial Vehicle Entity (SPE). A special purpose vehicle or special purpose entity is defined as a subsidiary created by a parent company for a special purpose. The special purpose most often, is to isolate a parent company from financial risk by providing securitization of assets The above is made possible by the fact that SPV has Its legal status as a separate company. This status makes its obligations to secure its assets in the eventuality of the parent company going bankrupt possible. This is why SPV is sometimes called a bankruptcy-remote entity. As a subsidiary with a legal entity status, a SPV has its own distinct balance sheet ( a picture of its assets, liabilities and capital) that's often off the balance sheet of the parent company. This is where investors have a problem with SPV, as it could be exploited to hide losses However, some businesses create SPV for one purpose, to aecuritize debt and give investors the assurance of repayment. And not always to commit financial fraud https://ayietimfinance..com/2023/01/special-purpose-vehicle-spv-isnt-always.html?m=1 1 Like 1 Share |
Re: Special Purpose Vehicle, SPV, Isn't Always Created To Commit Financial Fraud. by Mystic216: 1:37am On Jan 20, 2023 |
Wicked people ![]() |
Re: Special Purpose Vehicle, SPV, Isn't Always Created To Commit Financial Fraud. by QuotaSystem: 1:46am On Jan 20, 2023 |
Ayietim: Atiku’s SPV wasn’t created by a Parent Company for legitimate business like stated in your theory. It was created by a serving Vice President to steal public funds from the treasury. Big difference. 2 Likes |
Re: Special Purpose Vehicle, SPV, Isn't Always Created To Commit Financial Fraud. by Naira20: 2:43am On Jan 20, 2023 |
Let the Fight continue. Tinubu has been called the real Mr.SPV Even the account numbers have been revealed by PDP https://www.youtube.com/watch?v=nchElcIzcbo 1 Like |
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