ABSTRACT
Companies may need to be restructured to change their fi nancial strategy or to help correct a market underpricing. Changes in fi nancial strategy normally relate to a reduction in gearing. This can be effected by selling assets or raising new funds. In more serious cases, the restructuring might involve renegotiating terms with creditors, by extending loan repayment dates or by swapping debt into equity. This can be greatly complicated by the varying desires and legal claims of a variety of stakeholders, often in different jurisdictions. Changes in the market’s perception of the company are often managed by demerging units, in order to make the underlying value more transparent to shareholders.
