Recapitalization

Recapitalization is a type of corporate reorganization involving substantial change in a company's capital structure. Recapitalization may be motivated by a number of reasons. Usually, the large part of equity is replaced with debt or vice versa. In more complicated transactions, mezzanine financing and other hybrid securities are involved.

Leveraged recapitalization

One example of recapitalization is a leveraged recapitalization in which the company issues bonds to raise money and then buys back its own shares. Usually, current shareholders retain control. The reasons for such a recapitalization include:

  • Desire of current shareholders to partially exit the investment
  • Providing support of falling share price
  • Disciplining the company that has excessive cash
  • Protection from a hostile takeover
  • Rebalancing positions within a holding company
  • Help to improve the stock of the company during a time of poor economic conditions[1]

Leveraged buyout

Another example is a leveraged buyout, essentially a leveraged recapitalization initiated by an outside party. Usually, incumbent equityholders cede control. The reasons for this transaction may include:

  • Getting control over the company via a friendly or hostile takeover
  • Disciplining the company with excessive cash
  • Creating shareholder value via gradual debt repayment

Nationalization

Another example is a nationalization in which the nation in which the company is headquartered buys sufficient shares of the company to obtain a controlling interest. Usually, incumbent equity-holders lose control. The reasons for nationalization may include:

  • Saving a very valuable company from bankruptcy
  • Confiscation of assets
  • Executing eminent domain

Nationalisation is essentially a move by the nation of the company to acquire controlling interest in the company, either through buying majority shares with a motive to:

1) eliminate dominance of the shareholders.

2) own controlling interest in the company

It can also be an attempt by the national government to rehabilitate its position financially by issuing bonds to increase public debt and meet immediate liabilities.

References

  1. ^ "What is a Recapitalization". p. 1.[dead link‍]


Stub icon

This economic term article is a stub. You can help Wikipedia by expanding it.

Read other articles:

PTEN

PTENStruktur yang tersediaPDBPencarian Ortolog: PDBe RCSB Daftar kode id PDB4O1V, 1D5R, 2KYL, 5BZX, 5BUG, 5BZZPengidentifikasiAliasPTEN, 10q23del, BZS, CWS1, DEC, GLM2, MHAM, MMAC1, PTEN1, TEP1, phosphatase and tensin homolog, Phosphatase and tensin homolog, PTENbetaID eksternalOMIM: 601728 MGI: 109583 HomoloGene: 265 GeneCards: PTEN Lokasi gen (Manusia)Kr.Kromosom 10 (manusia)[1]Pita10q23.31Awal87,862,638 bp[1]Akhir87,971,930 bp[1]Lokasi gen (Tikus)Kr.Kromosom 19...

 

KKDA-FM

This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: KKDA-FM – news · newspapers · books · scholar · JSTOR (June 2015) (Learn how and when to remove this template message) Radio station in Dallas, TexasKKDA-FMDallas, TexasBroadcast areaDallas–Fort Worth metroplexFrequency104.5 MHzBrandingK104ProgrammingLanguag...

 

Rights of Man

Set of essays by Thomas Paine Not to be confused with Declaration of the Rights of Man and of the Citizen (1789), A Vindication of the Rights of Men (1790) by Mary Wollstonecraft, or The Rights of Man (1940) by H. G. Wells. Rights of Man Title page from the first editionAuthorThomas PaineCountryBritainLanguageEnglishSubjectThe French RevolutionPublication date1791 Rights of Man (1791), a book by Thomas Paine, including 31 articles, posits that popular political revolution is permissible when ...

سهوب الشرق الأوسط

سهوب الشرق الأوسط     الإحداثيات 36°15′N 39°15′E / 36.25°N 39.25°E / 36.25; 39.25   تقسيم إداري  البلد سوريا العراق الأردن  خصائص جغرافية  المساحة 132589 كيلومتر مربع  تعديل مصدري - تعديل   تمتد المنطقة البيئية لسهوب الشرق الأوسط (WWF ID: PA0812) في قوس من جنوب الأردن ع...

 

Права человека в Китае

Портал:Политика Китай Статья из серии Политическая системаКитайской Народной Республики Конституция Политические партии Генеральный секретарь ЦК КПК Си Цзиньпин Политбюро ЦК КПК Постоянный комитет Военный совет ЦК КПК Всекитайское собрание народных представителей ...

 

Sinema Kanada

Sinema KanadaSilverCity Richmond Hill CinemasJumlah layar2,831 (2006)[1] • Per kapita9.5 per 100,000 (2006)[1]Distributor utamaWarner Bros. 18.2%Fox 17.1%Alliance 12.8%[2]Film fitur yang diproduksi (2008)[3]Fiksi65 (86.7%)Animasi-Dokumenter7 (9.3%)Jumlah admisi • Per kapita3.1 (2010)[4]Keuntungan Box Office (2011)[5]TotalC$1 miliarFilm nasionalC$27.9 juta (2.8%) Bagian dari sebuah serial tentangBudaya ...

John Penn (governor)

English-born colonial administrator (1729–1795) For other people named John Penn, see John Penn (disambiguation). John PennGovernor of the Province of PennsylvaniaIn office1773–1776Preceded byRichard PennSucceeded byThomas Wharton Jr. (as President of Pennsylvania)In office1763–1771Preceded byJames HamiltonSucceeded byRichard Penn Personal detailsBorn14 July 1729London, EnglandDied9 February 1795 (aged 65)Pennsylvania, U.S.Spouses Grace Cox ​ ​(m. 1747, ...

 

Державний комітет телебачення і радіомовлення України

Державний комітет телебачення і радіомовлення України (Держкомтелерадіо) Приміщення комітетуЗагальна інформаціяКраїна  УкраїнаДата створення 2003Керівне відомство Кабінет Міністрів УкраїниРічний бюджет 1 964 898 500 ₴[1]Голова Олег НаливайкоПідвідомчі ор...

 

Hazel Ying Lee

American aviator Hazel Ying Lee李月英Hazel Ying LeeBorn(1912-08-24)August 24, 1912Portland, Oregon, U.S.DiedNovember 25, 1944(1944-11-25) (aged 32)Great Falls, Montana, U.S.Cause of deathPlane crashBurial placeRiver View Cemetery, Portland, Oregon45°27′54″N 122°40′23″W / 45.465°N 122.673°W / 45.465; -122.673OccupationPilotEraWorld War IIOrganizationWomen Airforce Service PilotsSpouseLouie Yim-qunParentsYuet Lee (father)Ssiu Lan Wong (mother)Chi...

Tylenol (brand)

Medication For information about the active ingredient in Tylenol, see paracetamol, also known as acetaminophen. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: Tylenol brand – news · newspapers · books · scholar · JSTOR (July 2021) (Learn how and when to remove this message) TylenolTylenol PM (left) an...

 

Lista över ledamöter av Sveriges riksdags andra kammare 1903–1905

Session i andra kammaren år 1904. Lista över ledamöter av Sveriges riksdags andra kammare 1903–1905. Yrkestiteln anger ledamöternas huvudsakliga sysselsättning. Riksdagsarbetet var vid den här tiden inget heltidsarbete. I de fall ledamoten saknar egen sida har födelseår skrivits ut. Även valkrets anges. Stockholms stad Första valkretsen (Nikolai och Katarina församlingar) Curt Wallis, e. o. professor, f. 1845 Fridtjuv Berg, fil.dr, folkskollärare, f. 1851 Martin Filip Nyström, ...

 

Фінал кубка України з футболу 2003

Фінал Кубка України з футболу 2003 Переможець «Динамо» К Фіналіст «Шахтар» Д Рахунок 2:1 Дата 25 травня 2003 Стадіон НСК «Олімпійський», Київ Найкращий гравець Фіна́л Ку́бка Украї́ни з футбо́лу 2003 — 12-й фінал Кубка України з футболу. Пройшов 25 травня 2003 року у Києві на «Олім�...

Наречия русского языка

Северное и южное наречия, разделённые среднерусскими говорами на территории распространения русских диалектов первичного формирования (карта 1965 года)[1][2] Наре́чия ру́сского языка́ — основные диалектные величины, размещённые на территории распространения �...

 

Jardín botánico de la Universidad Austral de Chile

Jardín botánico de la Universidad Austral de Chile Una vista del jardín botánico de la UACh.UbicaciónPaís  ChileLocalidad Chile Chile,  Los RíosCoordenadas 39°48′16″S 73°15′01″O / -39.8045, -73.2502CaracterísticasOtros nombres Jardín Botánico de la UAChTipo Jardín botánico.Vías adyacentes Isla Teja.Área 10 hectáreas.HistoriaInauguración Creación en el 1957.GestiónOperador Universidad Austral de Chile.Mapa de localización Ubicación d...

 

Moon Mullican

American singer-songwriter Moon MullicanBackground informationBirth nameAubrey Wilson MullicanBorn(1909-03-29)March 29, 1909Polk County, Texas, United StatesDiedJanuary 1, 1967(1967-01-01) (aged 57)Beaumont, TexasGenresCountry and westernwestern swingboogie-woogiebluesOccupation(s)Singer, pianist, songwriterYears active1926–1966LabelsKingCoralMusical artist Aubrey Wilson Mullican (March 29, 1909 – January 1, 1967),[1] known professionally as Moon Mullican and nicknamed King o...

Pieter Bruegel Senior

Pieter Bruegel Senior Pieter Bruegel Senior (c. 1525 – 9 September 1569) adalah pelukis Renaissance Belanda atau Flem. Ia terkenal untuk karya pemandangan dan petani kecilnya. Ia dijuluki 'Petani Bruegel' untuk memisahkannya dari anggota keluarga Brueghel lainnya. Namun ia merupakan yang paling terkenal di antaranya. Dari tahun 1559 ia menanggalkan huruf 'h' dari namanya dan mulai menandatangani lukisannya dengan nama Bruegel. Pranala luar Wikimedia Commons memiliki media mengenai Pieter Br...

 

Florida's 11th congressional district

U.S. House district for Florida FL-11 redirects here. For the state road, see Florida State Road 11. This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed.Find sources: Florida's 11th congressional district – news · newspapers · books · scholar · JSTOR (September 2014) (Learn how and when to remove this message) Florida's 11th ...

 

Instituto de Gestão do Património Arquitectónico e Arqueológico

Si ce bandeau n'est plus pertinent, retirez-le. Cliquez ici pour en savoir plus. Cet article ne cite pas suffisamment ses sources (novembre 2023). Si vous disposez d'ouvrages ou d'articles de référence ou si vous connaissez des sites web de qualité traitant du thème abordé ici, merci de compléter l'article en donnant les références utiles à sa vérifiabilité et en les liant à la section « Notes et références ». En pratique : Quelles sources sont attendues ? ...

جزيرة الوكلية

جزيرة الوكلية  -  قرية مصرية -  تقسيم إداري البلد  مصر المحافظة محافظة بني سويف المركز الفشن المسؤولون السكان التعداد السكاني 4173 نسمة (إحصاء 2006) معلومات أخرى التوقيت ت ع م+02:00  تعديل مصدري - تعديل   قرية جزيرة الوكلية هي إحدى القرى التابعة لمركز الفشن في محاف�...

 

Penistone railway station

Railway station in South Yorkshire, England PenistoneGeneral informationLocationPenistone, BarnsleyEnglandCoordinates53°31′34″N 1°37′23″W / 53.526°N 1.623°W / 53.526; -1.623Grid referenceSE250033Managed byNorthern TrainsTransit authoritySouth Yorkshire Passenger Transport ExecutivePlatforms2Other informationStation codePNSFare zoneBarnsleyClassificationDfT category F1HistoryOriginal companySheffield, Ashton-under-Lyne and Manchester RailwayPre-groupingGreat...