Financial Restructuring is a form of corporate restructuring.
- The process of reshuffling or reorganizing the financial structure or capital structure with the goal of improved performance, financial stability and increased value of the firm.
- It involves restructuring the assets and liabilities in line with cash flow needs.
- Done because of either compulsion (to avoid liquidation) or part of financial strategy.
- Involves formulation of schemes and legal sanctions.
June 1, 2020