Restructuring

Filed Under » , , ,
Dictionary Says

Definition of 'Restructuring'

A significant modification made to the debt, operations or structure of a company. This type of corporate action is usually made when there are significant problems in a company, which are causing some form of financial harm and putting the overall business in jeopardy. The hope is that through restructuring, a company can eliminate financial harm and improve the business.
Investopedia Says

Investopedia explains 'Restructuring'

When a company is having trouble making payments on its debt, it will often consolidate and adjust the terms of the debt in a debt restructuring. After a debt restructuring, the payments on debt are more manageable for the company and the likelihood of payment to bondholders increases. A company restructures its operations or structure by cutting costs, such as payroll, or reducing its size through the sale of assets. This is often seen as necessary when the current situation at a company is one that may lead to its collapse.

Articles Of Interest

  1.

    The One-Time Expense Warning

    These income statement red flags may not spell a company's downfall. Learn why here.

  2. The Merger - What To Do When Companies Converge

    Learn how to invest in companies before, during and after they join together.

  3. What Are Corporate Actions?

    Be a savvy investor - learn how corporate actions affect you as a shareholder.

  4. Earnings Sustainability: The Key To Your Investing Future

    Learn how to analyze earnings sustainability - an important part of making sound investments.

  5. Governance Pays

    Learn about how the way a company keeps its management in check can affect the bottom line.

  6. Microeconomics

    This tutorial teaches the basics of one of the most important economic topics. A must for all investors.

  7. An Overview Of Corporate Bankruptcy

    If a company files for bankruptcy, stockholders have the most to lose. Find out why.

  8. What are the three phases of a completed initial public offering (IPO) transformation process?

    While some large and successful companies are still privately-owned, many companies aspire toward becoming a publicly-owned company with the intent to gain another source of raising funds for ...

  9. The Basics Of Mergers And Acquisitions

    Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.

  10. Maintaining Work/Life Balance For Financial Professionals

    Maintaining work/life balance is a challenge for most professionals in the finance industry, but it doesn't have to be that way.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Zomma

    An options greek used to measure the change in gamma in relation to changes in the volatility of the underlying asset.

  2. Yield Elbow

    The point on the yield curve indicating the year in which the economy's highest interest rates occur. The yield elbow is the peak of the yield curve, signifying where the highest interest rates occurred.

  3. Xenocurrency

    A currency that trades in markets outside of its domestic borders.

  4. Wanton Disregard

    A standard of severe negligence. Wanton disregard is a very serious accusation that indicates that a person behaved extremely recklessly.

  5. Ultra ETF

    A class of exchange-traded funds (ETF) that employs leverage in an effort to achieve double the return of a set benchmark.

  6. Toehold Purchase

    A purchase of less than 5% of a target company's outstanding stockmade by an acquiring company. A toehold purchase of just under 5%, while not a significant stake in a firm, allows the shareholders a "toe-holds" grip on the company and its decision making.
Trading Center
http://sp.fastclick.net/ad/tr/10858-64082-15546-0?mpt=086db04698da8f09653dc4194d41b2a5