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.
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.
In addition, SPG's recapitalization proposal offered the certainty GGP desired along with an $11.
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.
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).