The gloves have come off a bit in the Senate race. Steve Pagliuca held a presser yesterday in which he went after Martha Coakley and Mike Capuano by name over their positions that, on final passage, they would vote "no" on the House's health care bill. Pags' argument is that neither of them would be a reliable 60th vote to pass the health care bill.
Capuano shot back, and promptly got his facts wrong. [see update below]
"I'm certainly not going to take any lectures from someone who ... made a fortune in part by gutting KB Toys, a great Massachusetts company, costing thousands of workers their jobs and their health insurance," US Representative Michael E. Capuano said ... Capuano's response, in the form of two written statements issued shortly after Pagliuca spoke, was a bit loose with the facts: Pagliuca was not among Bain directors involved in the KB buyout and did not serve on KB's board of directors.
Oops. UPDATE: As some alert commenters have pointed out, the Globe story may be incomplete. An AP story from a couple of weeks ago says that Pagliuca did profit to some (unspecified) extent from the KB Toys deal.
KB executed a so-called recapitalization plan in which it took on $66 million in additional debt while using its free cash to pay $85 million to Bain and $36 million to senior managers who approved the deal. As with Ampad, Pagliuca said he again received a sum proportional to his investment.
In January 2004, KB filed for bankruptcy. KB Toys has since gone through a second bankruptcy and complete liquidation.
"I don't feel good about it, but the way this works, these deals have risks," Pagliuca told AP. "For the really successful ones, you have unsuccessful ones." ... "If it didn't have a penny of debt," Pagliuca said of KB Toys, "it probably would have gone out of business."
Also, I got a robocall yesterday from Pagliuca making the same argument on health care. Here it is: