Recapitalization proposal

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 Montclair's proposal, we had contemplated distributing available cash to shareholders as part of our leveraged recapitalization proposal.
8 billion recapitalization proposal by Canada's Brookfield Asset Management Inc (NYSE:BAM).
The NCUA Board has indicated that they are open to alternatives, and Congress has weighed in on the issue with a five-year recapitalization proposal and asking FASB to reconsider the mark-to-market rules that have driven some of these losses at U.
Under the terms of the agreement, the company was required to deliver to its senior lenders a complete and comprehensive recapitalization proposal by January 31.
If QAD's recently announced recapitalization proposal becomes effective prior to the record date, the dividend, whether in cash or stock, will be adjusted proportionally in accordance with the new capital structure of the company.
2 billion in senior debt and to utilize cash and receivables at Dell to fund our recapitalization proposal, Dell has continued to move the goal posts by implying that more cash is required for our proposal to be implemented.
Mangrove remains committed to finding a better alternative for stockholders than the currently proposed merger between CPEX and FCB I, stands behind its fully-financed dividend recapitalization proposal, and is prepared to immediately enter into negotiations.
In addition, SPG's recapitalization proposal offered the certainty GGP desired along with an $11.
Pursuant to a stipulation relating to a lawsuit filed in connection with the initial recapitalization proposal of HCC, the Company may not close the Recapitalization for a period of seven weeks from the date of providing copies of the definitive Recapitalization agreements to the plaintiff (March 1, 2010).
NYSE: SPG) today issued the following statement in response to the highly conditional recapitalization proposal announced by General Growth Properties, Inc.
Those events are a lawsuit on a recapitalization proposal by a Hallmark Cards affiliate and the engagement of a financial advisor by the Special Committee of the Company's Board of the Directors considering the proposal, both of which events have been previously announced.