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re⋅struc⋅ture
[ree-struhk-cher] 
tʃər
verb, -tured, -tur⋅ing, noun | 1. | to change, alter, or restore the structure of: to restructure a broken nose. |
| 2. | to effect a fundamental change in (as an organization or system). |
| 3. | to recombine (bits of inexpensive meats), esp. by mechanical means, into simulated steaks, fillets, etc. |
| 4. | to restructure something. |
| 5. | the act or an instance of restructuring. |
Based on the Random House Dictionary, © Random House, Inc. 2009.
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| re·struc·ture (rē-strŭk'chər) v. re·struc·tured, re·struc·tur·ing, re·struc·tures v. tr.
To alter the structure of something. |
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Restructuring
A significant modification made to the debt, operations or structure of a company. This type of corporate action is usually made when there are significant problems in a company, which are causing some form of financial harm and putting the overall business in jeopardy. The hope is that through restructuring, a company can eliminate financial harm and improve the business.
Investopedia Commentary
When a company is having trouble making payments on its debt, it will often consolidate and adjust the terms of the debt in a debt restructuring. After a debt restructuring, the payments on debt are more manageable for the company and the likelihood of payment to bondholders increases. A company restructures its operations or structure by cutting costs, such as payroll, or reducing its size through the sale of assets. This is often seen as necessary when the current situation at a company is one that may lead to its collapse.
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See also: Bankruptcy, Bankruptcy Risk, Chapter 11, Merger, Recapitalization, Write Down
Also spelled: restructure
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restructuring
- A significant rearrangement of a firm's assets and/or liabilities. A firm's restructuring may include discontinuing a line of business, closing several plants, and making extensive employee cutbacks. A restructuring generally entails a one-time charge against earnings. Compare debt restructuring.
Copyright © 2003. Published by Houghton Mifflin.
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Main Entry: re·struc·tur·ing
Pronunciation: "rE-'str&k-ch&-ri[ng]
Function: noun
: the act or process of changing the structure of something (as a corporation or its ownership of securities)
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restructuring
The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics).
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