Restructuring | Practical Law

Restructuring | Practical Law

Restructuring

Restructuring

Practical Law ANZ Glossary w-022-6371 (Approx. 2 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 often 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 voluntary administration.
  • A refinancing of a company's existing debts.
A restructuring is sometimes known as a work out or turnaround.
See Practice note: overview, Voluntary administration.