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Restructuring: Positive Strategic Moves Restructuring Thesis

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In terms of infrastructure restructuring, when the technology company EarthLink, experienced financial difficulties and garnered a rating of underperforming by market analysts, it was suggested that it shut down or reduce some of its previously-proposed targets for expansion, divest some of its assets, and contain costs within its core connectivity enterprise through consolidating departments and cutbacks (Savitz 2007). Although limiting the company's scope for expansion might seem to be a negative rather than a positive move, when a restructuring is announced, greater confidence can be generated amongst shareholders, because of the company's demonstrated commitment to enhancing shareholder value through cost containment and an acknowledgement of its current difficulties....

Announcing a restructuring even for a troubled company suggests that its difficulties are not insurmountable, provided the organization keep its eye upon the future, and restructuring a high-performance organization can be an effort to generate further value and profits, and reallocate current assets in areas better suited for expansion, like research and development.
Works Cited

Ryniker, Roy. (2008). "Debt restructuring." Reorganization Alternatives Group Retrieved 16 Aug 2008 at http://www.realtgroup.com/Debt%20Restructure%20Article.htm

Savitz, Eric. (14 Aug 2007). "Street awaits EarthLink's restructuring moves." Seeking Alpha. Retrieved 16 Aug 2008 at http://seekingalpha.com/article/44392-street-awaits-earthlink-s-restructuring-moves

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Works Cited

Ryniker, Roy. (2008). "Debt restructuring." Reorganization Alternatives Group Retrieved 16 Aug 2008 at http://www.realtgroup.com/Debt%20Restructure%20Article.htm

Savitz, Eric. (14 Aug 2007). "Street awaits EarthLink's restructuring moves." Seeking Alpha. Retrieved 16 Aug 2008 at http://seekingalpha.com/article/44392-street-awaits-earthlink-s-restructuring-moves
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