Corporate Restructuring: In India and its Impact on the Economy

  • Shreya Chopra
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  • Shreya Chopra

    LLM Student at IILM University, India

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Abstract

Corporate Restructuring is financial engineering technique for restructuring or rebuild of the corporate entity to modify its existing Corporate capital structure. It helps to underline the Gaps in our ability to deal with the corporate crises, existing market changes, monetary policies. It teaches us what works and what does not, although we need to continue searching for additional practical solutions that were not tried during the crises. The world is changing day by day in terms of customers i.e peoples, thoughts, behaviours, habits, tastes etc. other than that there are rapid changes in technology, competition, products, market geographical area, new business policies, new business tools and standards, changing in political structure, Generation mind setup, Market policies, emerging of new sectors, etc. Restructuring helps the corporates to enhance their performance to beat the market competition and innovate in order to continuously maximize the profit to the existing promoters and shareholders, and help corporates to work into existing markets, grow the customer data, swipe off-market competitors, and implementation of new information and Technology and new software technology to give the training secession to the existing and new appointed staff to update the People and staff. A Corporate going through the tough financial scenario in the very current situation must need to understand the right process of corporate restructuring thoroughly, mostly the corporate associated with the financial troubles due to some significant problem. The Management of the troubled Corporate / company must hire the Financial as well as the legal Expert to assist and advise of the transaction deals and making the controversial and difficult decisions to save or restructure the Corporate and arrange the debt financing, reduction in operational expenses and to increase the sales as per the existing market scenario. And accordingly to the redirection of the firm's activities and deploying surplus cash from one business to finance profitable growth in another and to reduce the market risk and to focus the development of core competencies.

Type

Research Paper

Information

International Journal of Law Management and Humanities, Volume 5, Issue 2, Page 174 - 215

DOI: https://doij.org/10.10000/IJLMH.112824

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