when a company is having difficulties with making the payments on its debt it will often consolidate and adjust the terms of the debt in a debt restructuring creating a way to pay off bondholders a company can also restructure its operations or structure by cutting costs such as payroll or reducing its size through the sale of assets 
understanding restructuringthere are numerous reasons why companies might restructure including deteriorating financial fundamentals poor earnings performance lackluster revenue from sales excessive debt and the company is no longer competitive or too much competition exists in the industry a company may restructure as a means of preparing for a sale buyout merger change in overall goals or transfer to a relative for example a company might choose to restructure after it fails to successfully launch a new product or service which then leaves it in a position where it cannot generate enough revenue to cover payroll and its debt payments as a result depending on agreement by shareholders and creditors the company may sell its assets restructure its financial arrangements issue equity to reduce debt or file for bankruptcy as the business maintains operations restructuring process