Definition of moratoria in the Financial Dictionary - by Free online English dictionary and encyclopedia. What is moratoria? Meaning of moratoria as a finance term. What does moratoria mean in finance?
1.1 What is Business Restructuring. Restructuring is the corporate management term for the act of partially dismantling or otherwise reorganizing a company for the purpose of making it more efficient and therefore more profitable. This term is used in many different ways. First of all, restructuring is a profound change in the ways company operates. Therefore, it is basically associated with a major business modification, concerning personnel downsizing and asset revaluation.
It may include debt restructuring through bankruptcy or even liquidation of the company. Retrenchment involves reduction of a businessâs expenditures to become economically sound. Retrenchment effects can be categorized as financial, organizational or human. Downsizing generates financial benefit to the company through direct increase in the value to shareholders. Cutback initiatives include reduced overheads, efficient communication, less bureaucracy and faster decision-making.