Case | HBS Case Collection | November 2012 (Revised September 2013)

Restructuring at Nova Chemical Corporation (Abridged)

by Scott P. Mason

Abstract

Management of a diversified chemicals company faces two financial decisions: whether to finance a major investment in new production facilities for its rapidly expanding Environmental Products Division, and whether to sell a more slowly growing non-specialty chemicals division. The latter decision has implications for how the new investment, if it is undertaken, should be financed. Financing options available to the firm include bank borrowing, issuing convertible debt, and selling new common stock in the public market.

Keywords: Restructuring; Decision Choices and Conditions; Chemicals; Environmental Sustainability; Corporate Finance; Chemical Industry;

Citation:

Mason, Scott P. "Restructuring at Nova Chemical Corporation (Abridged)." Harvard Business School Case 213-075, November 2012. (Revised September 2013.)