Corporate restructuring is an action taken by corporate entities due to financial instabilities. It involves modification of their capital structure and operations, thus improving the company’s performance. Areness, an expert legal advisor, advises and assists corporates in implementing corporate restructuring by formulating strategies, schemes, and legal representation before the appropriate regulatory authorities.
We provide corporate guidance in structuring, exploring legal and regulatory options, and assessing the potential advantages of restructuring. Our services include drafting, negotiating, and analyzing transaction documents, such as applications, petitions, and resolutions.
Effective execution of restructuring transactions involves an interplay of complex operational, taxation, strategic, legal, and economic issues, which need to be refined to meet the desired business objectives. Our techniques of corporate restructuring are an amalgamation of core experience in the Indian tax laws, sector-specific knowledge and global legal framework that helps in enhancing the restructuring endeavors.
Prominent factors responsible for the arousal of corporate restructuring are economic loss, reverse synergy, cash flow, and changes in the ownership structure of a company. Such a shift in the ownership structure is likely due to merger, bankruptcy, over-employment in business, buyouts, takeover, adverse economic conditions, etc. As legal advisory experts, we ensure to thoroughly analyze on corporate debt restructuring, and operations reduction. Our proficiency in critical analysis and execution of complex and high-profile restructuring helps us deal with some of the largest industry leaders in India and abroad.
Our practice also ensures deep investigation of restructuring plans and transaction documents, including Master Restructuring Agreements, Debtor-Creditor Agreements, and Inter-Creditor Agreements. We advise and assist in structuring and implementing an exit strategy for investors from stressed assets, including disinvestment, demerger, slump sales, reduction in share capital, and auction.
Forms of Corporate Restructuring
- Financial Restructuring – When a company’s overall sales significantly decline due to adverse economic conditions, it can cause financial restructuring. To sustain the economic market and maintain the company’s profitability, the corporate is likely to alter its debt-servicing schedule, cross-holding pattern, equity structure, and equity holdings.
- Organizational Restructuring – Any change in a company’s organizational structure, like revamped job roles, modified reporting connections, decrease in hierarchy level, and reduced workforce lead to organizational restructuring. It helps to maintain business operations by reducing costs and paying off outstanding debt.
Mergers, acquisitions, and corporate restructuring are some of the fundamental aspects of the economic paradigm in these evolving times. With a change in trends, corporate restructuring activities are pacing up, leading to a growing presence in the international market. Corporate law encompasses the concepts of mergers, acquisitions, and downsizing, which allow companies to boost their financial performance, efficiency, and economies of scale. Essentially, these business practices are utilized to improve the business model for rapid technological and management advancements of the company.
With our team of skilled lawyers, we have built a reputation for having a hands-on approach and working closely with our clients and financial advisors to deliver noteworthy results. When it’s about managing your company’s fruitful future, you can’t put off restructuring! It is essential to help you navigate the complexities of today’s business environment.