Didn’t they transfer the debt to Asmodee since that was the subsidiary that was profitable enough to handle it without going under?
Maybe, though if you think about it, the idea is basically:
Hey, we borrowed all this money to buy up lots of companies. But rather than pay it back ourselves, we are going to put all of that debt on this one company we also bought (probably with some of that debt), because thay actually make money.
It’s a shell game to allow Embracer to walk away with all the profits and never have to pay their investors back. If Asmodee manages to pay off the debt, that’s nice for them. Other than the fact that they will be hamstrung by servicing that debt, rather than re-investing in the company. If Asmodee folds and gets auctioned off in Chapter 7, that ends up having no material effect on the leadership of Embracer who made the decision to take on all that debt. Either way, Embracer is jettisoning all responsibility for the choices the management of Embrace made.
This sort of leveraged debt buyout, loot the company, then jettison the debt tactic has been used over and over to destroy otherwise profitable companies in the name of short term profit for vulture capitalists.