Restructuring and Insolvency

Restructuring and insolvency refer to the processes companies use when they face financial difficulties. Restructuring involves reorganizing a company's debts and operations to improve its financial health, often through negotiations with creditors. Insolvency occurs when a company cannot pay its debts as they come due. In such cases, it may undergo formal procedures, like bankruptcy, where its assets are liquidated or restructured to repay creditors. Both processes aim to find a solution that allows the company to survive or, if necessary, to wind down operations in an orderly fashion.