Related topics: chief executive · company · profit

BlackBerry slashes jobs in face of $1B 2Q loss (Update)

It was once so addictive it inspired the nickname "CrackBerry." President Barack Obama confessed to being among the millions of devotees who couldn't bear to stop tapping feverishly away on its tiny keyboard. Madonna once ...

Japan's NEC reports 3.05 bln dollar annual loss

Japanese electronics giant NEC Corp. announced Tuesday a net loss of 296.6 billion yen (3.05 billion dollars) for the year to March due to the global economic downturn.

CEO of Nortel steps down as company liquidates

(AP) -- Nortel Networks CEO Mike Zafirovski is stepping down from the troubled telecommunications company, saying "a natural transition point" has been reached as the company continues to liquidate.

Moody's lowers outlook on Nokia

Rating agency Moody's said Tuesday it had lowered its outlook on Finnish mobile phone maker Nokia to "negative" from "stable."

Viacom announces layoffs, $785M in expenses

Media giant Viacom Inc. on Monday announced a round of layoffs and restructuring that will result in it booking $785 million in special expenses in its recently ended quarter.

Consortium prevails over Google for Nortel patents (Update)

(AP) -- A consortium that includes leading smartphone makers Apple and Research In Motion prevailed over Google this week with a $4.5 billion cash bid for about 6,000 patents and patent applications from bankrupt telecom-equipment ...

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Restructuring

Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Alternate reasons for restructuring include a change of ownership or ownership structure, demerger, or a response to a crisis or major change in the business such as bankruptcy, repositioning, or buyout. Restructuring may also be described as corporate restructuring, debt restructuring and financial restructuring.

In education, Restructuring (education) refers a requirement in the No Child Left Behind act of 2001, which requires schools identified as chronically failing for 5 years or more to undertake rapid changes that affect how the school is led and instruction delivered.

Executives involved in restructuring often hire financial and legal advisors to assist in the transaction details and negotiation. It may also be done by a new CEO hired specifically to make the difficult and controversial decisions required to save or reposition the company. It generally involves financing debt, selling portions of the company to investors, and reorganizing or reducing operations.

The basic nature of restructuring is a zero sum game. Strategic restructuring reduces financial losses, simultaneously reducing tensions between debt and equity holders to facilitate a prompt resolution of a distressed situation.

Steps:

This text uses material from Wikipedia, licensed under CC BY-SA