logo

Distress Restructuring

Knowledge Center

Finance and Investing

Forum

Rating

Anil
47
Anil, India

Distress Restructuring

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

X

Sign up for free

Welcome to the Finance and Investing forum of 12manage.

Here we exchange knowledge and experiences in the field of Finance and Investing.

❗Sign up now to gain access to 12manage. Completely free.

Reg
 

Rating

  Jaap de Jonge
7
Jaap de Jonge
Editor, Netherlands
 

Distress Restructuring

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 financial turnaround from severe financial distress through methods such as Debt Restructuring, Equity Restructuring, Working Capital Management and various Corporate Valuation techniques.
Therefore in (corporate) distress restructuring, the term does not mean restructuring in an organizational way, but rather in a financial perspective.
A term very similar to distress restructuring is Recapitalization.

  Srinivasa Rao Kilaru
2
Srinivasa Rao Kilaru
Business Consultant, India
 

Meaning of Distress Restructuring

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.

  Ashok Kella
2
Ashok Kella
Manager, India
 

Dependencies of Distress Restructuring

We tried to address our challenges through distress restructuring, but could not gain much of it. The reason was that the financial stress resulted from stagnation in sales and 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 its totality.

  Rohini Kamble
1
Rohini Kamble
India
 

Corporate Debt Restructuring Firms

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 specialized firm.

 

Leave a comment
Help improve this subject


More on Finance and Investing
Methods, Models and Theories Discussion Topics
👀Distress Restructuring
topic How to restore Trust in Financial Markets?
topic New Global Reserve Currency needed?
topic List of Investment Mantras
topic Know your Customer (KYC)
topic Never Waste a Good Crisis as Investor
topic Effect of Interest Rate Raise on Economic Growth
topic Alternative Investments
topic Minority Shares Buyback
topic The Equity Method in Accounting
topic The Preliminary Expenses in Balance Sheet
topic Cryptocurrencies - Characteristics, PROs and CONs
topic Foreign Investment Guarantees
🔥 Financial Management - Definition and Aspects
topic Investing by Business Firms
Participate


More on Finance and Investing
Methods, Models and Theories Discussion Topics
👀Distress Restructuring
topic How to restore Trust in Financial Markets?
topic New Global Reserve Currency needed?
topic List of Investment Mantras
topic Know your Customer (KYC)
topic Never Waste a Good Crisis as Investor
topic Effect of Interest Rate Raise on Economic Growth
topic Alternative Investments
topic Minority Shares Buyback
topic The Equity Method in Accounting
topic The Preliminary Expenses in Balance Sheet
topic Cryptocurrencies - Characteristics, PROs and CONs
topic Foreign Investment Guarantees
🔥 Financial Management - Definition and Aspects
topic Investing by Business Firms
Participate
Knowledge Center

Finance and Investing



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2024 12manage - The Executive Fast Track. V17.2 - Last updated: 19-5-2024. All names ™ of their owners.