Restructuring
Restructuring in insolvency law refers to the process that a financially troubled company undergoes to reorganize its debts and operations to regain financial stability. This often involves negotiating new terms with creditors, such as extending payment deadlines or reducing the amount owed. The goal is to allow the business to continue operating while repaying debts, rather than facing liquidation or bankruptcy. Restructuring can help preserve jobs and maintain the company’s value, benefiting both the business and its stakeholders.
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Restructuring refers to the process of reorganizing a company’s operations, financial arrangements, or structure to improve efficiency, adapt to market changes, or address financial difficulties. This may involve altering management roles, changing business strategies, selling assets, reducing costs, or even laying off employees. The goal is often to enhance performance, restore profitability, or better position the company for growth. Restructuring can take place during challenging times, such as bankruptcy, but can also occur to seize new business opportunities or respond to shifting consumer demands.