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.
A company faces bankruptcy when it does not have enough cash flow to meet its normal operating expenses, which are most commonly the interest expenses on their debts. If we assume the company is not delisted, it will most likely have two paths to choose from; 1) restructuring or 2) liquidation. 1) Restructuring. In a restructuring, a company will need to renegotiate its borrowing terms with its creditors, which are either banks or bond holders.