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 ?
BANKING AND CREDIT NEWS-December 23, 2014-Arcan Resources' recapitalization proposal supported by Stornoway Portfolio
Arcan Resources' recapitalization proposal supported by Stornoway Portfolio
M2 EQUITYBITES-December 23, 2014-Arcan Resources' recapitalization proposal supported by Stornoway Portfolio
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.
Uralsib - Russia Daily Equity Update, Market Overview - Oct 12 , 2011
Investors in Babcock & Brown Infrastructure Group (ASX:BBI) approved a A$1.8 billion recapitalization proposal by Canada's Brookfield Asset Management Inc (NYSE:BAM).
Australian Market Report of November 17: More Confirmation on Recovery
"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.S.
Dollar and Filson urge calm in wake of NCUA corporate bailout plan
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.
PGI negotiates financial restructuring plans
By contrast, mutual funds mark their securities to market daily and tend to evaluate recapitalization proposals in the light of their current carrying value.
Dealing with debtholders
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