ANSWER

Three types of restrucuring are -

Political restructuring -This is defined as a transition from a lopsided federal political structure to a true federalism charcterised by political inclusiveness, people-oriented constitutional amendments, resource control, electoral process, political representation, sharing of offices, citizens; right, protection of lives and properties, and building of enduring political infrastructure

Organisational Restructuring is the act of changing the business model of an organization to transform it for the better. These changes can be legal, operational processes, ownership, etc. The cause of such a shift in the company can be either external or internal.

Financial restructuring is the process of reshuffling or reorganizing the financial structure, which primarily comprises of equity capital and debt capital. Financial restructuring can be done because of either compulsion or as part of the financial strategy of the company. This financial restructuring can be either from the assets side or the liabilities side of the balance sheet.

INSTANCES OF RESTRUCURING ARE-

POLITICAL RESTRUCURING

Nigeria has undergone a long process of restructuring in terms of the number of geo-political administrative units constituting the polity. This process is popularly referred to as “state creation” and/or “reorganization” the process whereby new geo-political units/constituents known as “states” in most federations are created out of existing or old ones. The outcome of this process is usually an increase in the number of states constituting the Nigerian federation

ORGANISATIONAL RESTRUCTURING

When Facebook announced its first reorganization in 2011, the reasons included a desire to accommodate growth and streamline the company’s product development process. By that point, Facebook had already become the world’s second most visited website, bested only by Google. The company’s reorganization proved to be fruitful, as Facebook went on to achieve worldwide success and a steadily rising number of users of its services.

FINANCIAL RESTRUCTURING

An example of financial restructuring would be to add debt to lower the corporation's overall cost of capital. For otherwise viable firms under stress it may mean debt rescheduling or equity-for-debt swaps based on the strength of the firm.