A turnaround expert must determine whether a company is in trouble is worth more as a going concern than its liquidation value. If so, must the company’s finances in a manner to be restructured in line with the bargaining power of the holders of various securities. The restructuring requires a delay in repayments, price concessions, and a debt-for-equity swap.

A turnaround expert must determine whether a company is in trouble is worth more as a going concern than its liquidation value. If so, must the company’s finances in a manner to be restructured in line with the bargaining power of the holders of various securities. The restructuring requires a delay in repayments, price concessions, and a debt-for-equity swap.
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from
Thomas R. Piper,
Ronald W. Moore
Source: Harvard Business School
14 pages.
Publication Date: Sep 11, 1998. Prod #: 299014-PDF-ENG
Infinity Carpets, Inc. HBR case solution