Meaning
Financial restructuring involves changing a company’s financial structure to improve its stability and profitability.Definition
It’s a process where a struggling company reorganizes its debt, equity, or operations to avoid bankruptcy and return to financial health.Common Scenarios
This occurs when a company faces high debt, low cash flow, or a risk of default on its obligations.Objectives
Goals include reducing debt burden, improving liquidity, attracting new investment, and enhancing long-term sustainability.Author
