MACR (Minimum Alternate Corporate Restructuring)

MACR (Minimum Alternate Corporate Restructuring) is a legal process in India that helps financially distressed companies reorganize their debts and operations. It allows the company to negotiate with creditors to reduce or settle debts, often by converting debt into equity or extending repayment terms. The goal is to keep the company afloat, preserve jobs, and maximize value for all stakeholders. MACR is invoked during insolvency when a company faces financial difficulties but aims to restructure rather than close permanently. It provides a structured framework to facilitate negotiations, ultimately aiming for a sustainable financial turnaround.