Boston Bankruptcy Attorney

Corporate Restructuring

Corporations, from time to time, find it necessary to restructure the company, particularly in times of financial troubles or dwindling sales. In some cases, corporations are forced to restructure as part of having filed for bankruptcy.

Restructuring, a term coined by corporate management, is the act of partially dismantling or reorganizing a company or corporation in an effort to make it more profitable or to get it out of debt, if it is already profitable. This process is also known as corporate restructuring, debt restructuring, and financial restructuring.

Restructuring is commonly done as part of a bankruptcy case. It is also performed by other firms that have strategically taken over the corporation or following a merger. When the firm has been bought out by a different firm in a leveraged buyout or private equity firm, restructuring is usually necessary as typically corporations aren’t bought out when they are totally healthy.

When a company opts for restructuring, the executives typically will hire financial and legal advisors to assist in the transaction’s details and negotiations of the entire thing. In some cases, a company may hire a new CEO specifically to make the decisions necessary for a successful restructuring. This person typically is expected to save, reposition, or both the company.

Any restructuring effort will involve financing debt, selling portions of the company to new investors, and reducing or reorganizing operations. Typically, the third is where the layoffs come into play.

Contact a Boston Bankruptcy Attorney

If you have been laid off in a company’s restructuring and are now considering bankruptcy due to the lack of a new job, contact the Boston bankruptcy attorney of Joshua Spirn & Associates at 1-800-975-5346.