Advisory Services - Restructuring Flashcards Preview

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Flashcards in Advisory Services - Restructuring Deck (8):
1

When is restructuring needed

Insufficient cash

2

Restructuring vs Liquidation

When the recoverable portion of debt is higher, the companies will go for restrucuring. Otherwise, they will just go for liquidation

3

What's left and right of the balance sheet

Assets on the left and Liabilities and Equities on the right

4

Asset restructuring - 1

Sale of non core assets. Does the company have non core assets that significant market value but are unnecessary for the business

5

Asset Restructuring 2

Reduce spending on Cap ex

6

Asset Restructuring 3

Sale of a controlled entity

7

What's liability restructuring?

Agreement with the creditors to alter the condition of the liabilities. For example, suspending interests, Debt write-off, Debt-Equity swap, Convertible bonds

8

What are the three parameters that creditors will look for?

Probability of default, Loss given the default/liquidation and Successful restrucuturing