Corporate workout

Corporate workout refers to financial rescue of a firm that is outside formal bankruptcy and insolvency law.^[1] Also known as out-of court debt restructuring, corporate workout practices aim to remedy or avoid foreclosure and bankruptcy.^[2] The debtors, creditors as well as the main shareholder and bondholders voluntarily participate in the workouts in order to make rearrangements concerning financial investments and rescheduling and restructuring debt. As a way of response to corporate crisis, corporate workout arrangements were widely seen in the aftermath of the Asian financial crisis in 1997.

See also

• Restructuring
• Debt restructuring
• Compromise agreement
• Creditor
• Debt
• Insolvency
• Voluntary redundancy

References

Further reading

• Low, Linda. "Asian crisis, corporate and financial restructuring, and transformation of traditional Chinese enterprises." Rethinking Chinese Transnational Enterprises: Cultural Affinity and Business Strategies 7 (2002): 240.
• Mako, William P. "Emerging-Market and Crisis Applications for Out-of-Court Workouts: Lessons from East Asia." Corporate Restructuring (2005): 99.