ACCA P4 AFM Advance Financial Management

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ACCA P4
Advanced Financial Management (AFM)
高级财务管理
ACCA Lecturer: Lily Wang




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, P4 Chapter 11 Content


1 Corporate reconstruction


2 Devising a corporate reconstruction scheme




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, 1.Corporate reconstruction

 Corporate reconstruction of a failing company
• Companies in financial distress often undergo corporate
reconstructions to enable them to remain in business rather than go
into liquidation. Corporate reconstruction in a failing company often
involves raising some new capital and persuading creditors/lenders to
accept some alternative to the repayment of their debts. This will
ensure that the business continues in the short term
• Longer term, the management need to consider whether the
reconstruction will helpthe company develop a sustainable
competitive advantage, and provide opportunities for raising further
finance




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