In a spin-off the entity being separated from the parent company often is assigned specific debt attributable to it as part of the sale process.

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Quizplus · Accepted Answer

In a spin-off, the entity being separated can indeed be assigned a portion of the parent company's debt, which is allocated based on various factors such as the spin-off entity's size, future cash flows, and strategic positioning. This helps in ensuring that both the parent and the spun-off entity have sustainable capital structures post-separation.

In a Spin-Off the Entity Being Separated from the Parent