Third, institutional design.

Three pen holders.

And the equity holders get wiped out, the old equity holders.

The institutional response is,

It's the debt holders.

You lose the institutional imperative.

leadership, diplomacy and institutional design.

leadership, diplomacy and institutional design.

SS That's an institutional requirement.

And we learned that the debt holders were actually more senior to the equity holders.

It couldn't pay it's debt holders.

It would penalize the equity holders.

And pays off the liability holders.

I mean, they're just place holders.

Institutional Venture Partners and Allen and Company.

And if there wasn't enough money to pay all of the debt holders, then the equity holders got nothing.

It's forced child labor on an institutional scale.

So we need to change that institutional culture.

So we're starting to get the institutional responsibility.

Equity holders, they kind of took a gamble.

Well, it's the debt holders get first dibs.

Institutional barriers were another serious headache in the project.

The demands of modern institutional thinking is coming in.

So let's say these are debt holders right here.

There might be different debt holders who have different

And in this case the equity holders get nothing.

And it's also going to benefit the bond holders.

Enrique Peña Nieto, of the Institutional Revolutionary Party, or PRl.

The institutional model always pushes leftwards, treating these people as employees.

But that's the view from the debt holders' point of view.

The equity holders, you can imagine, they don't want to be

So the equity holders are actually the owners of the company.

And then anything that's left over goes to the equity holders.

The backbone of making investment decisions for global holders of capital.

He knew that institutional thinking doesn't work in India. Individual thinking does.

To mainly institutional investors, but it might be some favored rich guys.

And essentially, the debt holders become the new shareholders of the company.

The only people who will lose big are the old equity holders.

And so you're writing a 1 billion check to the equity holders and a 1 billion check to the liability holders, or the people who lent this company money.

Because it lacks the institutional, organizational, managerial forms to turn it into capital.

While many loudly thought of themself being the World Cup holders of tomorrow,

And if we're the debt holders, and let's say it goes into bankruptcy.

So some of the cash will go to the debt holders as interest.

Where a lot of institutional funds won't look at a stock that's below 5.

Because the debt holders, all they were getting their upside was just interest, right?