Restructuring - Characteristics

Characteristics

• Cash management and cash generation during crisis
• Impaired Loan Advisory Services (ILAS)
• Retention of corporate management sometimes "stay bonus" payments or equity grants
• Sale of underutilized assets, such as patents or brands
• Outsourcing of operations such as payroll and technical support to a more efficient third party
• Moving of operations such as manufacturing to lower-cost locations
• Reorganization of functions such as sales, marketing, and distribution
• Renegotiation of labor contracts to reduce overhead
• Refinancing of corporate debt to reduce interest payments
• A major public relations campaign to reposition the company with consumers
• Forfeiture of all or part of the ownership share by pre restructuring stock holders (if the remainder represents only a fraction of the original firm, it is termed a stub).
• Improving the efficiency and productivity through new investments, R&D and business engineering.