Final answer:
Restructuring in business can involve write-downs of assets and liabilities as well as distributions to equity holders.
Explanation:
Restructuring may involve a write-down of assets or liabilities. When a company restructures, it may need to reassess the value of its assets or debts, potentially leading to a write-down of their worth.
For example, if a firm decides to restructure/refinance long-term liabilities, it could involve changing the terms of loans or debts, possibly leading to a write-down of liabilities to reflect their new valuation.
Restructuring can also entail a distribution to equity holders, especially if the company is undergoing significant changes that impact its ownership structure.
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