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Webster's New World Finance and Investment Dictionary » restructure
restructure
restructure definition - finance
To
comprehensively reorganize a business with the intention of putting it back on
solid, profitable ground. Companies that go through a restructuring process
typically work with creditors to change debt terms. For example, creditors may
exchange some of the debt for equity or extend the maturity date. Companies
also reorganize their product offerings or sales forces by eliminating unprofitable
products and reassigning sales people. When workforces are restructured,
layoffs of general staff and top management may occur. The company incurs a
large expense to pay severance to laid off employees and therefore usually
takes a restructuring charge against earnings for one or two quarters after the
restructuring is announced.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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