SOME EXAMPLES OF CORPORATE RESTRUCTURING

– Assume ABC Limited has surplus funds but it is not able to consider any viable project. Whereas XYZ Limited has identified viable projects but has no money to fund the cost of the project. Assume the merger of both the said companies. A viable solution emerges resulting in mutual help and benefit and in a competitive environment, it offers more benefits than what meets your eyes.

– Take the case of a company secretary in practice. His income may not be as regular as would be the case of a company secretary in employment. Assume he marries a company secretary in employment. The merger will help them meet the requirements of practice and enable the practice to grow without getting affected by the irregularity in cash flow.

Thus going by the above simple illustrations, one should be able to understand that Corporate Restructuring aims at different things at different times for different companies and the single common objective in every restructuring exercise is to eliminate the disadvantages and combine the advantages.