fjármálaskipta

Fjármálaskipta is an Icelandic term that translates to "financial restructuring" or "financial reorganization" in English. It refers to a process where a company or individual facing financial difficulties undertakes significant changes to its assets, liabilities, or operations in order to improve its financial health and ensure its survival. This can involve a range of measures, from renegotiating debt with creditors to selling off assets, merging with another entity, or undergoing a formal insolvency proceeding.

The primary goal of fjármálaskipta is to resolve a problematic financial situation and put the entity on a sustainable path. This might involve reducing debt burdens, improving cash flow, or making the business model more viable. The specific actions taken depend on the nature and severity of the financial distress. For example, a company might seek to refinance its existing loans at more favorable terms, or it might need to shed unprofitable divisions.

Fjármálaskipta can be initiated voluntarily by the company or individual, or it can be a response to external pressures, such as demands from creditors or regulatory requirements. In some cases, it may involve legal proceedings, such as bankruptcy or receivership, to facilitate an orderly restructuring. The process often requires careful planning and execution, and may involve professional advisors such as lawyers, accountants, and financial consultants. The outcome of fjármálaskipta can vary widely, from a successful turnaround to liquidation.