BANKRUPTCY RISK AND FINANCIAL RESTRUCTURING OF A CORPORATION

Abstract

The process of restructuring a company is complex and typically involves both external and internal risks to the company's operations. Restructuring is usually used as one of the final means to improve efficiency and avoid bankruptcy. Bankruptcy, in turn, is a procedure applied by a court when a company experiences financial insolvency, the financial condition of the company being unable to meet its financial obligations to various parties: creditors, shareholders, suppliers and customers. This article deals with the main signs and characteristics of bankruptcy risks, and the process of restructuring as a tool for avoiding the consequences of a crisis that has become imminent in an organisation. The aim of the article is financial restructuring within the framework of bankruptcy risk reduction. The obtained conclusions, based on the analysis of bankruptcy risk calculations at MTS PJSC, are of practical importance for the development of the company's exit strategy from the crisis situation.