Business is a risk-taking task occurred with uncertainty in regard to the firm’s operation because the journey is not predictable. It is a systematic risk where there are volatility and instability with the earnings, reduced liquidity, changing global markets that hinder the company’s objectives and growth.
Business Restructuring refers to the rearrangement of the corporate structure. It is a process whereby a company alters its present structure, which involves a change in liability or asset structure. Business structuring has immense significance in today’s world considering the huge emphasis on liberalization and globalization while ensuring free and extensive competition amongst businesses. Business restructuring helps businesses to survive and grow in the existing market with both internal and external growth.
The contemporary method of managing loans under stress is to apply for short-term measures instead of trying to formulate a one-stop-solution on recovery or revival. This requires long term debt restructuring, management change, hassle-free liquidation, equity infusion, and recovery process in place. With the introduction of the Insolvency and Bankruptcy Code 2016, the Government has paved the way to a quicker and rational method of settling this NPA issue.
Broad-spectrum of services on business restructuring includes: