Yes. Naturally companies go public in order to be able to raise money more easily. Sometimes it's just getting off the ground and wants to grow; sometimes it's been in business for a relatively long time; sometimes it's nothing more than a business plan.
If management isn't familiar with they way all this works, it may think finding funding is much easier than it is. Chances of finding legitimate lenders are slim, unless the business has a proven track record. And so in the end, the toxic funders are there, ready to provide that cash infusion.
Within a year at the most, the borrower will discover just how destructive these kinds of transactions are. But hey! They'll at least be able to pay their own salaries.
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