During the 2008- '09 Global Financial crisis (GFC) and the European Sovereign crisis (ESC) banks interrupted lines of credits to non-financial corporations. Discuss how the shortage of credit supply in the above-mentioned periods affected corporate failures and firms' investment decisions. Explain how the forbearance lending contributed to the low output growth experienced after the GFC and ESC by economies/firms.

Given that during these economic crises, company defaults rose sharply in number, many speculated that private equity-owned companies would struggle even more than other non-sponsored firms. Discuss how private equity-owned companies fared during these crises, linking the theoretical arguments to empirical evidence.