Distress Restructuring?

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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, Editor, 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
We tried to address our challenges through distress restructuring, but could not gain much of it; as it used to result either from stagnation in sales or pricing. Sometimes procurements go up disproportionally compared to your revenue. More often, finance becomes ill due to leverages working somewhere else; hence you need to see distress restructuring in totality.
 

 
Corporate Debt Restructuring
Rohini Kamble, India, Member
Corporate Debt Restructuring can be considered by any company facing serious financial problems and by companies undergoing bankruptcy. To avoid and deal with such problems, you can contact a firm like JM Finance Firm in India, offering a broad spectrum of business solutions.
 

     
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