You've also missed the point. I'm not saying it's categorically I'll-intentioned, but it certainly is not categorically well-intentioned either.

It is most certainly well-intentioned. Managers take on debt with the intention of creating, not destroying value.

If you read about some of the more spectacular company collapses involving debt in LBO deals you will find that is not even close to being universally true.

Investors in those LBOs aren't better off with the collapse of those companies. Even sophisticated investors sometimes make terrible judgement calls. Failure was not their objective.

The notion that that investors don't want their investments to spectacularly fail should really be self-evident.