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 ?
Norske Skog has decided to extend the consent solicitation deadline for the ongoing recapitalization proposal from 29 September until Tuesday 3 October at 17:00 CET.
M2 EQUITYBITES-December 23, 2014-Arcan Resources' recapitalization proposal supported by Stornoway Portfolio
BANKING AND CREDIT NEWS-December 23, 2014-Arcan Resources' recapitalization proposal supported by Stornoway Portfolio
European Commission President Jose Barroso is to present a recapitalization proposal today for European banks ahead of the G-20 meeting.
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.
This is a balanced recapitalization proposal that will substantially reduce the group's debt level and interest expenses, enabling the group to invest both in core business and green growth initiatives.