Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

recapitalization

Read a random definition: sans frais

A quick definition of recapitalization:

Recapitalization is when a company changes the way it raises money by adjusting its stocks, bonds, or other securities. This can be done by changing the company's articles of incorporation or merging with another company. For example, a company might eliminate unpaid preferred dividends and create a new class of senior securities. Sometimes, a company might also use recapitalization to make itself less attractive to hostile takeovers by substituting debt for equity in its capital structure.

A more thorough explanation:

Definition: Recapitalization is the process of adjusting a company's capital structure, which includes its stocks, bonds, and other securities, through changes to its articles of incorporation or by merging with a parent or subsidiary company.

For example, a company may eliminate unpaid preferred dividends and create a new class of senior securities as part of its recapitalization process.

Recapitalization can also involve substituting debt for equity in a company's capital structure, which is known as leveraged recapitalization. This is often done to make the company less attractive to hostile takeovers.

Example: Company A decides to undergo recapitalization by issuing new shares of stock and using the proceeds to pay off its existing debt. This will change the company's capital structure and reduce its debt-to-equity ratio, making it more attractive to investors.

Explanation: In this example, Company A is adjusting its capital structure by issuing new shares of stock and using the proceeds to pay off its existing debt. This will change the company's financial position and make it more attractive to investors who are looking for a company with a lower debt-to-equity ratio.

recant | recaption

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
LSD+ is ad-free, with DMs, discounts, case briefs & more.