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Simple English definitions for legal terms

recapitalization

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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

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19:43
@Dkk: yeah register 1 website and every swinging tom dick and harry calls/emails/texts to 'help with seo'. like bruh, if YOU found it, what i am doing is working
Dkk
19:43
Indeed!
19:48
wasp, i think people are hopeful for a gov who at least attempts to care about the common man
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
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