0:04
so a restructuring or a reorganizing of
0:07
a business typically means that the
0:11
debts are changed in some way so it may
0:16
be that payments are spread out over a
0:19
longer period of time than what is in
0:21
the contract it may be uh reducing the
0:25
interest rate on the various debts it
0:28
may be an actual reduction in what the
0:32
principal balance owed on a debt is
0:36
there can also be uh other types of
0:39
restructuring and reorganization that
0:41
goes on it could be jettison and
0:44
rejecting some burdensome leases that a
0:47
company has it could be bringing in new
0:51
investment or new Equity it may be
0:54
changing the equity structure of the
0:56
company
0:58
so the goal goal of a restructuring or
1:02
reorganization is to make the company
1:05
leaner meaner and cleaner it emerges
1:08
from the
1:10
process more efficiently better able to
1:13
operate without overly burdensome
1:16
contracts so if you’re speaking about a
1:19
restructuring or reorganization you’re
1:21
referring to a chapter 11 a chapter 7 is
1:25
a pure liquidation it is a trustee who’s
1:28
coming in taking all the the assets
1:31
liquidating locking the doors and
1:33
shutting everything down