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Restructuring
Practical Law UK Glossary 1-384-6171 (Approx. 3 pages)
Glossary
Restructuring
A process for a company in financial difficulties to reorganise its liabilities so that the business of the company can survive. A restructuring is usually implemented by a contract between the company and its creditors. The terms may involve:
- Implementing cost-cutting measures such as the closing of unprofitable businesses.
- A statutory procedure such as administration.
- A refinancing of a company's existing debts.
A restructuring is sometimes known as a workout or a turnaround. For more information, see Practice note, Corporate debt restructuring: step by step.