RECAPITALIZATION
recapitalization, n. An adjustment or recasting of a corporation’s capital structure ¡ª that is, its stocks, bonds, or other securities ¡ª through amendment of the articles of incorporation or merger with a parent or subsidiary. ? An example of recapitalization is the elimination of unpaid preferred dividends and the creation of a new class of senior securities. Cf. REORGANIZATION(2). [Cases: Corporations 38, 581. C.J.S. Corporations ¡ì¡ì 54¨C61, 792¨C797.] ¡ª recapitalize, vb.leveraged recapitalization. Recapitalization whereby the corporation substitutes debt for equity in the capital structure, usu. to make the corporation less attractive as a target for a hostile takeover.
¡ª Also termed leveraging up.
What is the legal translation of RECAPITALIZATION in Chinese?
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