Why not? It's pretty good for all the stakeholders that have a say.
The old shareholders sold for a nice price.
The new ownership didn't have to pay for the whole thing.
The lender gets to charge a pretty good interest rate because there's a good chance of default. If they're lucky, they get repaid; if not, maybe they made enough in interest to make it worthwhile; maybe when it defaults, they'll be able to make something worthwhile out of the wreckage they got at a nicer price.
Leveraged buy outs aren't great for stakeholders that don't have a say. Employees usually get new terms worse than the old ones; in this case, there's been some severance at least. Customers get a promise of a big bang bankruptcy in the near to medium term, rather than a slow fizzle. Sometimes companies with a large payment they can't make can restructure, and sometimes they shutdown with little notice. As a private company without public accounting reports, there will be a lot of guessing about revenue and debt service.
