Corporate/ Business Restructuring Volume 1

Corporate restructuring refers to a business restructuring process in which an entity makes modifications to its legal structure to ensure a continuous and smooth running of the business. The process of business restructuring is done in terms of the Company and other Business Entities Act [Chapter 24:31]. This process of restructuring is usually employed by corporates when the business is facing financial or economic constraints for example, when a company is failing to pay a corporate debt, it has an option to enter into a restructuring agreement with its creditors to which have impact on its legal structures while simultaneously reviving the business to endure competition within the market. In this agreement, the company's strategy to pay the corporate debt would be mentioned and be such that it changes the structure of the business be it in terms of share distribution or ownership of the company. It is therefore imperative to note at this point that Creditors and