Restructuring is a type of business for companies to resort to when there is a major adjustment in debt, operations or structure of a company as a means of reducing or diminishing financial damage and improving business. When a company has difficulty repaying its debt, it often resorts to debt restructuring in debt restructuring, creating a way to repay bondholders. Or by restructuring its operations or financial structure by reducing costs, such as salaries, or reducing its volume through the sale of assets.
It can be done in the form of restructuring the company internally, processes, departments or changing ownership, enabling the business to become more integrated and streamlined. Financial and legal advisers are often hired to negotiate restructuring plans. Parts of the company may be sold to investors, and can hire a new CEO (Executive Director) to help implement the changes. It can include the results of changes in computer procedures and systems, networks, sites and legal issues. Because positions may overlap, some jobs and employees can be eliminated.