What does the Restructuring Group do?
What does the Restructuring Group do?
The Restructuring Group division within an Investment Bank typically provides services to distressed companies -- often approaching Bankruptcy, in Bankruptcy or emerging from Bankruptcy. If hired by the distressed company, the investment bank will typically negotiate on the companies behalf against its creditors to try and cut the best deal for the Company. The "best deal" usually meaning as much debt forgiveness while trying to salvage some if any equity value (usually all or most of the equity value gets wiped out).
Restructuring can also be used as a "nice" term to cut costs (fire a lot of people), or try and reduce overhead to make the firm more profitable (try to avoid bankruptcy). Restructuring can mean shutting down divisions, or "restructuring" the organization in a variety of other ways to save money.
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