What does recapitalized mean?
Recapitalized refers to the process of increasing the capital of a company, often through the issuance of new shares or bonds. This can be done to improve a company's financial health, pay off debts, or fund new projects. The term is commonly used in financial and business contexts, and can also imply a restructuring of a company's finances. Recapitalization can be a strategic move to prevent bankruptcy or to position a company for future growth. It may involve significant changes to a company's ownership structure or financial obligations.
verbTo increase the capital of a company, typically by issuing new shares or bonds.
- To increase the capital of a company.
- To reorganize a company's finances.
"The struggling airline was recapitalized with a large investment from a private equity firm."
"The company was recapitalized to pay off its debts."
"The government helped recapitalize the bank to prevent its collapse."
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Etymology of recapitalized
The term 'recapitalized' originates from the combination of the prefix 're-' meaning 'again' and 'capitalized', which comes from 'capital', referring to wealth or assets. The process of recapitalization involves reconstituting or replenishing a company's capital.
How recapitalized is actually used
Often used in financial and business contexts.