In the case of sleep and respiratory DME manufacturer Respironics, the Company helped one of its suppliers secure an interest-free loan that was fully guaranteed by Respironics. Under terms of the loan, Respironics bore the full financial risk of non-payment.
It’s important to remember that “value” can come in forms other than cash. Value can be conveyed in the forgiveness of debt and the avoidance of risk. (non-recourse debt)