Recapitalization is a type of corporate reorganization involving substantial change in a company's capital structure.
Usually, the large part of equity is replaced with debt or vice versa.
In more complicated transactions, mezzanine financing and other hybrid securities are involved.
The reasons for this transaction may include: Another example is a nationalization in which the nation in which the company is headquartered buys sufficient shares of the company to obtain a controlling interest.
The reasons for nationalization may include: Nationalization is essentially a move by the nation of the company to acquire controlling interest in the company, either through buying majority shares with a motive to: It can also be an attempt by the national government to rehabilitate its position financially by issuing bonds to increase public debt and meet immediate liabilities.