Recapitalization Agreement

[ { "value": "A Recapitalization Agreement is a strategic arrangement typically involving the restructuring of a company's debt and equity mixture with the aim of stabilizing the capital structure. This financial maneuver can be vital for companies facing financial distress or looking to optimize their leverage for growth and stability. Recapitalization may include exchanging debt for equity, issuing new shares, or buying back existing shares to reduce outstanding debt, thereby impacting the company’s liquidity and investor confidence. It is often employed to improve balance sheets, make the company more attractive to investors, or prepare for future investments and expansions. } ]