Distress Restructuring?

Finance and Investing

 

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Finance and Investing > Best Practices > Distress Restructuring?

Distress Restructuring?
Anil
What is distress restructuring? How do we define it? When is it carried out? How?
 

 
Distress Restructuring
Jaap de Jonge, Management Consultant, Netherlands
The term distress restructuring belongs in the corporate finance realm rather than change and organization. When a firm is in a financial crisis or facing bankruptcy, this umbrella term is used to indicate the corporate turnaround from severe financial distress through methods such as Debt/Equity Restructuring, Working Capital Management and Corporate Valuation.
Therefore in distress restructuring, the term "restructuring" is not used in an organizational, but rather in a financial perspective.
 

 
Meaning of Distress Restructuring
Srinivasa Rao Kilaru, Business Consultant, India, Member
Distress causes due to illiquidity due to poor structuring of working capital at various levels (viz work-in-progress, bills receivable etc.) of business. Such a company must undertake restructuring strategies (incentives for early payment, delaying in payments to creditors etc) and activities to come out of this situation. Those activities are called distress restructuring.
 

 
Distress Restructuring-dependency Relevant
Ashok Kella, Manager, India, Member
 

 
Corporate Debt Restructuring
Rohini Kamble, India, Member
 

     

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