Term: Restructuring

Refers to the capital structure and operating changes required in a Chapter 11 bankruptcy filing which allows a company to continue operations but only in a restructuring agreement with lenders and investors. Many distressed and turnaround investment specialists will seek to acquire the debt of a distressed company prior to a bankruptcy filing and then emerge in a stronger position once the company is restructured. As in: We bought up the fulcrum security prior the company’s restructuring and now we control 80 percent of the equity.

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