Recapitalization proposal

(redirected from Recapitalization Proposals)

Recapitalization proposal

Often used in risk arbitrage. Plan by a target company to restructure its capitalization (debt and equity) in a way to ward off a hostile or potential suitor.

Recapitalization Proposal

A plan for a company to change its capital structure. For example, a company may propose buying back its own shares and issuing debt to change from an equity-based capital structure to a debt-based capital structure. Very often, a company makes a recapitalization proposal when it is a target and wishes to ward off a hostile takeover.
References in periodicals archive ?
In the event of the failure of SPG's acquisition and recapitalization proposals, GGP would be left without the capital it needs to emerge from bankruptcy and, after the expiration of its exclusivity period, will no longer control its own destiny.
By contrast, mutual funds mark their securities to market daily and tend to evaluate recapitalization proposals in the light of their current carrying value.
NYSE: SPG) ("SPG") today announced that it has withdrawn its fully financed acquisition and recapitalization proposals for General Growth Properties, Inc.
There are presently no other viable third party refinancing or recapitalization proposals available to the Company.
AMEX:ION) (the "Company") today provided information related to the recapitalization proposals it has received.
The Company expects that the Bankruptcy Court will establish procedures to consider alternative sale or recapitalization proposals in the near future.
If approved by unitholders of record (as of January 24, 2006), the recapitalization proposals would result in, among other things:
The Company and the Ad Hoc Committee have exchanged recapitalization proposals and we believe we are narrowing the gap on our outstanding issues.
The sale agreement also permits the company to consider alternative sale or recapitalization proposals.
The Board has two alternative recapitalization proposals before it for consideration.
was retained by the Company as financial advisors and subsequently, in August 1995, was requested to undertake a broad process to actively contact a wide range of investors and oil and gas companies with a view to major asset dispositions, significant recapitalization proposals and possible merger proposals with submissions requested by September 15, 1995.
This process has resulted in a variety of proposals being received ranging from merger and recapitalization proposals to asset dispositions.