Restructuring Event Research Articles

Adsorption of 2-Mercapto-1-methylimidazole on the (√3 × 22) Reconstructed and (1 × 1) Phases of an Ordered Au(111) Electrode under Potential Control

The self-assembled monolayers (SAMs) of organosulfur compounds bearing an imidazole (Im) functional group can form hydrogen bonds with others and tailor specific interfacial structures used for CO2 reduction, biosensing, and corrosion prevention. The current study employed cyclic voltammetry and in situ scanning tunneling microscopy (STM) to address the adsorption and structure of 2-mercapto-1-methylimidazole (MMI) on the reconstructed and unreconstructed Au(111) electrodes as a function of potential. The adsorbed MMI molecule assumed the unprotonated form, allowing its S- and N-ends to bind with the Au electrode at a positive potential. Molecular resolution STM images showed an ordered Au(111)–(√21 × √21)R10.9°–MMI structure. The Au–N bond could weaken and be broken at a negative potential, leading to a disordered MMI adlayer. This restructuring event was coupled with the protonation of the Im group. These processes resulted in a sharp peak, which shifted negatively by 60 mV with an increase of 1 pH unit. MMI admolecules were desorbed at a more negative potential to unveil a pitted Au surface, resulting from etching of MMI adsorption. This feature supports the S–Au–S motif for MMI adsorbed to the Au(111) electrode, irrespective of the initial Au surface structure. The effect of MMI as an additive to the deposition bath of Ni was also explored.

The Life‐cycle Dynamics of Zombie Companies amongst Listed Firms in China

AbstractThis paper analyses the life‐cycle dynamics of zombie companies – broadly defined as businesses that are consistently unable to meet their interest expenses from current profits – amongst listed firms in China over the period 2008–2019. A large share of zombie companies subsequently return to nonzombie status. This proportion is higher for firms undergoing a major restructuring event, low leverage levels, and with smaller operating expense ratios. However, zombie firms that return to nonzombie status continue to have lower levels of profitability compared with their industry peers and have a higher probability of relapsing into zombie status compared with firms that have never been classified as zombie. Concerted efforts to revive zombie companies using major restructuring events appear insufficient in overcoming the longer term scarring effects of zombification on firms' profitability. The results highlight the potential benefits of the ongoing efforts by Chinese regulators to improve the delisting process.

Conformational plasticity underlies membrane fusion induced by an HIV sequence juxtaposed to the lipid envelope

Envelope glycoproteins from genetically-divergent virus families comprise fusion peptides (FPs) that have been posited to insert and perturb the membranes of target cells upon activation of the virus-cell fusion reaction. Conserved sequences rich in aromatic residues juxtaposed to the external leaflet of the virion-wrapping membranes are also frequently found in viral fusion glycoproteins. These membrane-proximal external regions (MPERs) have been implicated in the promotion of the viral membrane restructuring event required for fusion to proceed, hence, proposed to comprise supplementary FPs. However, it remains unknown whether the structure–function relationships governing canonical FPs also operate in the mirroring MPER sequences. Here, we combine infrared spectroscopy-based approaches with cryo-electron microscopy to analyze the alternating conformations adopted, and perturbations generated in membranes by CpreTM, a peptide derived from the MPER of the HIV-1 Env glycoprotein. Altogether, our structural and morphological data support a cholesterol-dependent conformational plasticity for this HIV-1 sequence, which could assist cell-virus fusion by destabilizing the viral membrane at the initial stages of the process.

Retirement Security: Trends in Corporate Restructurings and Implications for Employee Pensions

Over the past 20 years, corporate restructurings, particularly mergers and acquisitions (M&A) tended to happen more frequently during periods of economic expansion. GAO's analysis found that from 1999 through 2018, M&A activity comprised the largest share of corporate restructurings. In terms of dollar value of completed deals, M&A activity experienced relative peaks in 2000, 2007, 2015-2016, and 2018. The number of M&A deals followed a similar trend. Further, GAO found that company takeovers comprised the largest share of completed M&A activity during the time period, and many completed deals included private equity involvement, that is generally a transaction involving equity capital not quoted on a public exchange. Since 2009, M&A deals, on average, have tended to be completed in shorter time frames. In contrast, large bankruptcies — those $305 million or more in 2018 dollars — occurred during periods of economic distress and peaked during the two most recent recessions. The effects of corporate restructuring on retirement plans are generally unclear. Limited data make it difficult to understand or determine the effects, if any, of corporate restructurings on pension benefits. Two key sources of data we analyzed, the Bloomberg Terminal and the UCLA LoPucki Bankruptcy Research Database, may not contain the full array of restructuring events and do not include data or other key information on pension plans. In addition, pension benefit changes may be made with or without regard to any underlying restructuring event and such restructurings could result in business and economic efficiencies. One expert stated that, as with corporate restructuring events, the acquiring firm will often harmonize their benefits so the target firm's benefits are made similar to the acquiring firm. Thus, some employees could obtain access to another company's pension and benefit programs. Other experts told GAO that a restructuring may prompt a company to re-think its employee benefit structures. Moreover, a few experts said there is less time for some stakeholders, including employees and retirees, to determine how the restructuring will impact their pension plan. As a consequence, these experts said affected stakeholders, including retirees and the Pension Benefit Guaranty Corporation may be excluded from certain negotiations. As noted in previous GAO work, bankruptcy transactions may have adverse effects for employees as bankruptcy can be a contentious process where stakeholders compete for assets that are often diminishing in size. On average, firms that emerge from bankruptcy do so with over one-quarter fewer employees than they had prior to filing for bankruptcy.

Geodynamic evolution of a Pan-African granitoid of extended Dizo Valley in Karbi Hills, NE India: Evidence from Geochemistry and Isotope Geology

The Dizo Valley is an important geological province in NW Karbi Hills of Shillong Plateau (NE India). The Karbi Hills contain profusely intruded bodies of A-type granitoids that have been attributed to a post-collision setting. The Dizo Valley magmatic suite is a bimodal association of voluminous granitoid plutons with dolerite and amphibolites (metabasalts). Our present data demonstrates that there were two episodes of A-type granitoid magmatism in this part of the craton. Studied Kathalguri granitoids (KG) of Dizo Valley represents the late phase, about 515.1±3.3–515.5+2.7Ma age, dated by zircon LA-ICPMS U–Pb method. The age of emplacement represent the late Pan-African (Mid-Cambrian) event of granitoid magmatism concomitant to the Gondwana continental restructuring event with the integration of East and West Gondwana held between 570 and 510Ma. A previous granitoid emplacement episode of about 690Ma has been referred in literature. The late phase of granitoids formation tends to be massive, occasionally show flow banding, degassing pots and amphibolite breccias with chilled margin. Its mineralogy shows abundance of accessory phases like zircon, allanite, apatite, bastnaesite, monazite, sphene and xenotime.Geochemical parameters offer metaluminous to peraluminous, non-porphyritic, shoshonitic to high potassium, calc-alkaline composition. Other chemical criteria bear the character of A2-type granitoids with high SiO2 (64.00–70.75wt.%) and alkali (3.26–6.30wt.%) but poor Ca and Mg content. The binary plots of Y+Nb–Rb and Y–Nb confirm their within-plate granite (WPG) character. The pluton is enriched in total REE (av. 614.64ppm), Y and heavy REE (27.62–65.00ppm; av. 41.87ppm) compared to low calcium granite; Eu anomaly is moderately negative (∂Eu=0.43). Enrichment of incompatible elements like large ion lithophile elements (LILE) of Rb, Ba and Sr and REE are consistent with the A-type granites. The behavior of Ba, Rb and Sr suggest a progressive enrichment of Ba for the studied granitoids and a gradual depletion of Rb, Sr and Eu values. The Lu–Hf profile produced an initial 176Hf/177Hf (i) ratio of all zircons from 0.2819–0.2821 and have ɛHf(t) values −12.20 to −18.90; suggesting melting of 2.25–2.67Ga old metasomatized crust (TDM2) of magmatic origin which has been predicted to produce KG granitoids that had gained enrichment in LILE during earlier subduction events. The zircons bear evidence of oscillatory zoning visible in Cathodo Luminescence (CL) images which clearly attributes toward a magmatic origin of KG granitoids.

Are target leverage ratios stable? Investigating the impact of corporate asset restructuring

Abstract If firms balance the benefits and costs of leverage, then we might expect corporate asset shocks to trigger a change in corporate target leverage. We investigate the impact of corporate asset restructuring and find that target leverage after restructuring is reduced for downsizing firms and increased for upsizing firms. Changes in target leverage are stabilized by the second year after the restructuring event and are monotonic relative to the degree of restructuring. Decomposition analysis shows that corporate asset restructuring directly and significantly affects target debt ratios. Compared to control firms, downsizing firms adjust claims by repurchasing debt while upsizing firms issue debt securities. As expected, debt repurchases are associated with lower tax liabilities while debt issuance decisions correspond to lower growth proxies and are consistent with a higher adverse selection cost of issuing equity, positive leverage deficit, higher tax liabilities, and lower bankruptcy risk.

Proteasome assembly from 15S precursors involves major conformational changes and recycling of the Pba1-Pba2 chaperone.

The chaperones Ump1 and Pba1-Pba2 promote efficient biogenesis of 20S proteasome core particles from its subunits via 15S intermediates containing alpha and beta subunits, except beta7. Here we elucidate the structural role of these chaperones in late steps of core particle biogenesis using biochemical, electron microscopy, cross-linking and mass spectrometry analyses. In 15S precursor complexes, Ump1 is largely unstructured, lining the inner cavity of the complex along the interface between alpha and beta subunits. The alpha and beta subunits form loosely packed rings with a wider alpha ring opening than in the 20S core particle, allowing for the Pba1-Pba2 heterodimer to be partially embedded in the central alpha ring cavity. During biogenesis, the heterodimer is expelled from the alpha ring by a restructuring event that organizes the beta ring and leads to tightening of the alpha ring opening. In this way, the Pba1-Pba2 chaperone is recycled for a new round of proteasome assembly.

Corporate Restructuring: The Impact of Workforce Reduction on Success and Failure

In this paper we examine the impact of workforce reduction on success or failure of corporate restructuring. Reduction in Contractual labor and Exempt workforce is studied with time horizon from restructuring event. Also, the percentage reduction and its impact on success or failure is studied. HR Managers of thirty companies who have gone under restructuring process during the year 2010-11 are surveyed for the study. We found that reducing workforce results in failed M&A, we also found that workforce reduction within first two months of merger increases the risk of failure.

Steering Greece's Debt Restructuring Through the CDS Quicksand

A central policy concern since the onset of the Greek debt crisis in 2010 has been whether sovereign debt restructurings trigger credit default swaps (CDS). For the first time since AIG threatened to default on its CDS in 2008, the Greek debt crisis returned CDS to the global spotlight. The question of whether sovereign debt restructurings trigger CDS matters not only for buyers and sellers of CDS, but for financial stability more generally. While there was universal agreement that a failure to pay when due would trigger a failure to pay credit event under CDS, whether formally ‘voluntary’ restructurings also trigger a credit restructuring event was uncertain prior to the Greek debt restructuring in March 2012. With the benefit of the experience on the Greek restructuring February/March 2012, this article assesses how likely five types of restructuring, ranging from a simple bond exchange over the use of CACs to exit consent are to trigger CDS. The paper is structured into five parts. Part I outlines techniques for restructuring sovereign debt; Part II describes how CDS work and the challenges they raise in debt restructurings. Part III examines the most important credit event in the context of sovereign debt restructurings, the restructuring credit event. Part IV analyses whether five different types of sovereign debt restructurings techniques trigger CDS. Finally, Part V examines the central role of ISDA determinations committees.

Restructuring through spin‐off or sell‐off: transforming information asymmetries into financial gain

AbstractThe authors examine how managers select between corporate restructuring implementation alternatives and how those decisions influence the profitability of the restructuring event. They argue that managers and owners have information asymmetries with respect to the assets in the restructuring and the restructured firms' diversification strategy, and that managers select between two popular implementation alternatives, spin‐offs and sell‐offs, to convert knowledge differences into financial gain. When the restructured assets reside in primary and related business lines or the firm has low and related diversification among its business lines, the restructuring is difficult for observers to assess and understand. Spin‐offs most effectively and profitably reduce information asymmetries by transferring assets to the capital market and increasing the efficiency and transparency of the restructuring firm. Conversely, when the restructured assets reside in secondary and unrelated business lines or the firm has high diversification, sell‐offs best mitigate asymmetries by using market forces to reallocate assets to their most productive uses while improving the strategy and performance of the restructuring firm. Tests of a sample of 204 restructuring events support the hypotheses. Overall, the findings suggest that the influence of corporate restructuring on financial performance is determined in part through how the restructuring is implemented. Copyright © 2007 John Wiley & Sons, Ltd.

Restructuring risk in credit default swaps: An empirical analysis

This paper estimates the price for restructuring risk in the US corporate bond market during 1999–2005. Comparing quotes from default swap (CDS) contracts with a restructuring event and without, we find that the average premium for restructuring risk represents 6%–8% of the swap rate without restructuring. We show that the restructuring premium depends on firm-specific balance-sheet and macroeconomic variables. And, when default swap rates without a restructuring event increase, the increase in restructuring premia is higher for low-credit-quality firms than for high-credit-quality firms. We propose a reduced-form arbitrage-free model for pricing default swaps that explicitly incorporates the distinction between restructuring and default events. A case study illustrating the model’s implementation is provided.

Restructuring Risk in Credit Default Swaps: An Empirical Analysis

This paper estimates the price for restructuring risk in the U.S. corporate bond market during 1999-2005. Comparing quotes from default swap (CDS) contracts with a restructuring event and without, we find that the average premium for restructuring risk represents 6% to 8% of the swap rate without restructuring. We show that the restructuring premium depends on firm-specific balance-sheet and macroeconomic variables. And, when default swap rates without a restructuring event increase, the increase in restructuring premia is higher for low-credit-quality firms than for high-credit-quality firms. We propose a reduced-form arbitrage-free model for pricing default swaps that explicitly incorporates the distinction between restructuring and default events. A case study illustrating the model’s implementation is provided.

CEOs vs. Directors: Who Calls the Shots When Firms Underperform?

We study the evolution of the board among firms experiencing a sudden negative performance shock and highlight the influence of the CEO in determining the changes. Over 40% of the original directors depart the board and boards become more independent in the three years following underperformance. The proportion of directors who work as consultants and of directors who are executives in other firms increases, while the proportion of directors in the financial industry, directors who hold multiple board seats, and directors representing large shareholders decreases. Influential CEOs are associated with smaller increases in board independence and less director turnover than less influential CEOs. Changes in the percentage of directors who are executives in other firms and directors who represent large shareholders are also negatively related to CEO influence. Together, these results show that influential CEOs continue to maintain their influence over the board following underperformance while less influential CEOs lose even more of their original influence. CEO influence and board changes are not related to subsequent changes in firm performance and the likelihood that firms will experience a financial restructuring event. We conclude that firms adjust their boards based on their own specific managerial and firm requirements.

Blood-Testis Barrier Dynamics Are Regulated by α2-Macroglobulin via the c-Jun N-Terminal Protein Kinase Pathway

The blood-testis barrier (BTB), in contrast to the blood-brain and blood-retina barriers, is composed of coexisting tight junctions, gap junctions, and basal ectoplasmic specializations, a testis-specific type of adherens junction. Recent studies showed that BTB restructuring that facilitates germ cell migration during spermatogenesis involves proteolysis, an event that is usually restricted to the cell-matrix interface in other epithelia. For instance, a surge in alpha(2)-macroglobulin (alpha(2)-MG), a protease inhibitor produced by Sertoli cells, was detected at the Sertoli-Sertoli and Sertoli-germ cell interface in the epithelium during cadmium chloride-induced BTB disruption in adult rats. It is thus proposed that the increase in alpha(2)-MG is crucial for protecting the epithelium from unwanted proteolysis as well as regulating the availability of cytokines that affect junction turnover. Although both tight junction and adherens junction dynamics at the BTB are regulated via the p38 MAPK signaling pathway, the mechanism(s) that regulates alpha(2)-MG is entirely unknown. In this study, we have shown that by administering dimethylaminopurine, a c-Jun N-terminal protein kinase (JNK) inhibitor, to the testis, JNK activity was blocked specifically and alpha(2)-MG production was inhibited, worsening the cadmium chloride-induced damage to the epithelium. Studies coupled with inhibitors, immunoblottings, and immunofluorescent and electron microscopy have unequivocally demonstrated that the JNK signaling pathway is a putative regulatory pathway for alpha(2)-MG production in the testis. This finding illustrates for the first time that a cell-matrix restructuring event occurs in normal cell physiology at the cell-cell interface in the testis, highlighting the significance of alpha(2)-MG in the regulation of BTB function.

Assembly and Maturation of the U3 snoRNP in the Nucleoplasm in a Large Dynamic Multiprotein Complex

The assembly and maturation of box C/D snoRNPs, factors essential for ribosome biogenesis, occur in the nucleoplasm. To investigate this process, we have analyzed non-snoRNP factors associated with the nucleoplasmic human U3 snoRNA. We show that both the precursor and mature length nucleoplasmic U3 snoRNAs are present in larger multiprotein complexes that contain the core box C/D proteins as well as many non-snoRNP factors linked to snoRNP assembly (TIP48, TIP49, Nopp140), RNA processing (TGS1, La, LSm4, hRrp46), and subcellular localization (CRM1, PHAX). Using RNAi, we show that most of these factors are essential for box C/D snoRNA accumulation. Furthermore, we demonstrate that the core proteins undergo a restructuring event that stabilizes their binding to the snoRNA. Importantly, restructuring, which may be mediated by the putative remodeling factor TIP49, appears to be linked to nucleolar localization. We believe that the assembly complex coordinates snoRNA processing, snoRNP assembly, restructuring, and localization.

Elucidation of the Deposition Processes and Spatial Structures of Alkanethiol and Arylthiol Molecules Adsorbed on Pt(111) Electrodes with in Situ Scanning Tunneling Microscopy

In situ scanning tunneling microscopy (STM) was used to examine the spatial structures of n-alkane thiols (1-hexanethiol, 1-nonanethiol, and 1-octahexanethiol) and arylthiols (benzenethiol and 4-hydroxybenzenethiol) adsorbed on well-ordered Pt111 electrodes in 0.1 M HClO4. The electrochemical potential and molecular flux were found to be the dominant factors in determining the growth mechanisms, final coverages, and spatial structures of these organic adlayers. Depending on the concentrations of the thiols, deposition of self-assembled monolayers (SAMs) followed either the nucleation-and-growth mechanism or the random fill-in mechanism. Low and high thiol concentrations respectively produced two ordered structures, (2 x 2) and (square root of 3 x square root of 3)R30 degrees , between 0.05 and 0.3 V. On average, an ordered domain spanned 500 A when the SAMs were made at 0.15 V, but this dimension shrank substantially once the potential was raised above 0.3 V. This potential-induced order-to-disorder phase transition resulted from a continuous deposition of thiols, preferentially at domain boundaries of (square root of 3 x square root of 3 x )R30 degrees arrays. All molecular adlayers were completely disordered by 0.6 V, and this restructuring event was irreversible with potential modulation. Since all thiols were arranged in a manner similar to that adopted by sulfur adatoms (Sung et al. J. Am. Chem. Soc. 1997, 119, 194), it is likely that they were adsorbed mainly through their sulfur headgroups in a tilted configuration, irrespective of the coverage. Both the sulfur and phenyl groups of benzenethiol admolecules gave rise to features with different corrugation heights in the molecular-resolution STM images. All thiols were adsorbed strongly enough that they remained intact at a potential as negative as -1.0 V in 0.1 M KOH.

The value-relevance of current and forward-looking accounting information subsequent to a corporate restructuring

Abstract When a company recognizes a restructuring charge, current operating earnings are reduced by the accrued estimated costs of a typically multiyear restructuring plan. Given the magnitude and non-recurring nature of the charge, analysts and the popular press often attempt to remove the effects of the restructuring and focus on pre-charge earnings. Thus, the restructuring phenomenon raises concerns about the value-relevance of fundamental accounting data. This paper investigates this issue by assessing the value-relevance of both current and forward-looking accounting information for a sample of restructured firms. We use a residual income valuation model that is based on book value and projected abnormal earnings to uniquely capture the accounting dynamics of the restructuring event. The explanatory power of this valuation model is consistently higher than models based on current earnings even after controlling for the non-recurring charge. The results also indicate that the value-relevance of earnings declines following a restructuring, while the forward-looking information marginally increases in explanatory power. These results suggest that subsequent to a restructuring, investors price the dissipation of owners' equity reflected in current book value and augment that book value with more forward-looking accounting information consistent with the residual income model.

The Relation Between Market Prices and Fundamental Value Surrounding a Corporate Restructuring

This study examines the correlation between market prices and an accounting-based fundamental value following a corporate restructuring. Although restructuring charges are included in income from operations, earnings before ?non-recurring? costs are prominently discussed by management and the popular press. This has prompted concern that these operating costs are not fully impounded by the market. We use the Feltham and Ohlson residual income model to estimate the value implications of a restructuring. This approach is ideally suited to the restructuring event which sacrifices current book value to enhance future earnings. We find that observed price changes are highly correlated with the changes in firm value implied by the accounting-based model. However, we also find an unanticipated negative relation between the change in value and future returns. This anomalous result can be explained by a negative correlation in the value estimates, consistent with initial overoptimism in the analyst forecast data.

Effects of the program-management model: a case study on professional rehabilitation nursing.

In an attempt to increase organizational innovation and flexibility, Cardinal Hill Rehabilitation Hospital moved from the traditional discipline-management model to the program-management model. In the restructuring, the integrity of professional nursing practices was put to the test when the director of nursing position and numerous staff nursing positions were eliminated. This article evaluates statistics from the three years that have elapsed since the restructuring event in order to determine the new program-management model's compatibility with patient outcomes associated with professional nursing standards.