What is Financial Restructuring?

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.