what is recapitalization 
recapitalization is the process of restructuring a company s debt and equity mixture often to stabilize a company s capital structure the process mainly involves the exchange of one form of financing for another such as removing preferred shares from the company s capital structure and replacing them with bonds understanding recapitalizationrecapitalization is a strategy that a company can use to improve its financial stability or overhaul its financial structure to accomplish this the company must change its debt to equity d e ratio by adding more debt or more equity to its capital there are many reasons why a company may consider recapitalization including 