An Analysis Of Capital Restructuring As A Solution To Corporate Failures

Capital restructuring of corporate entities is the systematically planned and packaged re-positioning exercise deliberately embarked upon by entrepreneurs with the aim of recognizing the ownership equity of the firm and repositioning the firm in proper footing as to effect survival and withstand increased profitability.

The main objective of this study is to determine the problems that leads to frequent corporate failure as well as the prospect of Nigeria as a base. For this research work three firms in Nigeria were visited.

In effecting this research work, the researcher used questionnaire administered to both prospective investor, existing owner of these three firms and a sample of customers drawn from Enugu-Onitsha, Aba and Nnewi depots of these firms. The researcher also used oral interviews with the key management staff of these three firm, as well as related published and unpublished data. The researcher analysed the data and information obtained and also tested the hypothesis using chi-square and correlation analysis.

Though critical analysis, it was observed that some of the problem militating against production firms that leads to their failure in Nigeria could have been averted through capital restructuring and proper financial portfolio. However, some customers undertaking proper feasibility studies. Monetary authorities and National Economic Reconstruction Fund (NERFUND) could give lighter conditionalities for and, fund assistance as well as eligibility for firms enlistment into the stock market (going public) this would enable entrepreneurs evolve effective growth policies, consolidation programmes as well as fund mobilization, strategies that would be possible for their management to implement.

In view of the finding and outcome of the tested hypothesis it was concluded that the investors dissatisfaction with the present enterprises approach to survival and profiteering as well as the various constraint on production companies ability to survive in a harsh economic environment would be minimized firm in the Eastern states has brighter prospects if they could recongnize their capital structure and base and be positioned for greater profitability and growth. This is because most of the problem are amended solution.

Title page

Approval page

Dedication

Acknowledgement

Abstract

Table of Content

CHAPTER ONE

Introduction

1.1  Background of Study

1.2  Statement of the Problem

1.3  Objective of Study

1.4  Significance of Study

1.5  Research Question

1.6  Research Hypothesis

1.7  Scope and Limitation of the Study

1.8  Plan for the Development of Study

1.9  Definition of Operational Terms

Reference

CHAPTER TWO

2.0  Review of Related Literature

2.1  What is finance, capital structure & Capital Restructuring

2.2  Debt and Equity Mix (Gearing)

2.3  Cost of Capital

2.4  Optimum Capital

2.5  Capital management in a Contemporary Business

2.6  Causes of Corporate Failure in Nigeria

2.7  External (Environmental) Factors

2.8  Internal Factor

2.9  Effects of Corporate Failure in Nigeria

2.10 Signs of Corporate Failure

2.11 Steps to take to avoid Corporate Failure

Reference

CHAPTER THREE

3.0  Research Design and Methodology

3.1  Research Design

3.2  Sources of Data

3.3  Primary Sources of Data

3.4  Secondary Sources of Data

3.5  Area/Unit of Study

3.5.1The Universe

3.5.2The Target Population

3.6  Method of Investigation

3.7  Oral Interview Method

3.8  Questionnaire Method and Its Design

3.9  Sampling Population and Sample Size

3.10 Determination of Sample Size

3.11 Method of Data Presentation

3.12 Method of Data Analysis

Reference

CHAPTER FOUR

4.0 Data Presentation Analysis

4.1 Data Presentation

4.2 Data Analysis

CHAPTER FIVE

5.0 Finding Conclusion and Recommendations

5.1 Findings

5.2 Recommendations

5.3 Conclusions

Bibliography