Financial Restructuring is a form of corporate restructuring.
Potential reasons for financial restructuring are:
- Financial difficulty
- Unable to pay debts
- Breaches of covenants
- Accumulated losses
- Overvalued or fictitious assets
- Negligible net worth
- External competition
- Obsolete technology
- Misappropriation of funds
- Loss of market share
- Inefficient management (financial, human, technical etc)
- External factors (market trends, population trends, availability of resources etc)
- Availability of alternate investors
- Strict lending criteria of banks
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May 30, 2020
What are the reasons for Corporate Restructuring?
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