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Recapitalize - Meaning, Definition & English Examples

Recapitalize means to change the financial structure of a company by altering its debt and equity mix, often to improve stability or fund growth. It involves restructuring capital without changing ownership.

recapitalize

/riːˈkæpɪtəlaɪz/ /riːˈkæpɪtəlaɪz/

Definition:

To reorganize a company's capital structure, often by altering debt and equity proportions.

Synonyms:

restructure, reorganize, refinance

Part of Speech:

verb

Antonyms:

liquidate, dissolve

Common Collocations:

recapitalize a company, recapitalize debt, recapitalize the business

Derivatives:

recapitalization, recapitalizing

Usage Tips:

Use "recapitalize" when discussing financial restructuring to improve stability or growth in a business context.

Common Phrases:

"recapitalize the firm, " "strategic recapitalization, " "forced recapitalization"

Etymology:

Derived from Latin "re-" (again) + "capitalis" (of the head or wealth), meaning to adjust capital anew.

Examples:

  • 1. The company plans to recapitalize to reduce its debt burden.
  • 2. Investors urged the firm to recapitalize for better financial health.
  • 3. The bank helped the business recapitalize after losses last year.
  • 4. Recapitalizing can prevent bankruptcy by restructuring outstanding obligations.

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