Restructuring occurs when a business significantly modifies its debt, operations, ownership, or structure to either improve or protect itself.
Restructuring is often but not always, a response to financial pressure felt by a business. It can also be an effective way of improving business performance for example, selling a cost centre.
So why should you want to restructure rather than close a financially distressed business? An operating business is worth more than its parts, but not in a clearance sale.
Assets such as goodwill and custom software have significant value to a continuing business but lose almost all of their value in liquidation. This is why liquidation rarely sees all creditors paid in full.
点击阅读更多
免责声明:
本简报重点介绍立法和政策变化,仅供一般使用。它无意在发送者和接收者之间建立律师-客户关系。它不构成法律建议或法律意见。在未事先征求律师意见的情况下,您不应根据本法律更新中所包含的任何信息行事或依赖这些信息。
One comment
Pingback: Restructuring insolvent firms – Legal Insights and Trends In Kenya