Recapitalisation

SpikeyBush | 02:24 Sat 04th May 2013 | Business & Finance

3 Answers

A firm I have an interest in is looking to do this. What is it? I have formed the notion recently they are up sh!t street and this may be either a last ditch avoidance or alternative to bankruptcy

The 12 Years Old 'lifer'

Iva

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FredPuli43

Is the company issuing further shares? A company in debt may issue shares, either generally or as a straight swap to its creditors, offering them a share in the company in exchange for the debt. Recapitalisation is a rearrangement of the company's structure, changing debt for equity or vice versa. It can be positive; companies may do it to dissuade a takeover bidder; but it is commonly a sign of some trouble.

SpikeyBush

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Thanks Fred, your opinion is much appreciated.

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