Voluntary Restructuring

Voluntary restructuring is a process where a company decides to reorganize its finances or operations on its own terms, often to improve efficiency or address financial difficulties. This can involve renegotiating debts, selling parts of the business, or changing management. Unlike bankruptcy, which is court-ordered, voluntary restructuring is initiated by the company itself, allowing it to take control of its situation. The goal is to stabilize the business, reduce costs, and ultimately enhance profitability while avoiding more drastic measures like liquidation.