Publications
Publications
- November 1990 (Revised June 1993)
- HBS Case Collection
FMC Corp.: A Recapitalization
By: William J. Bruns Jr. and Julie H. Hertenstein
Abstract
A proposed recapitalization will use new debt to pay a large dividend to some shareholders in return for a reduction of their voting power. The result will be a highly leveraged financial structure and negative owners' equity. Students can trace the effects of proposed borrowing and payouts. Provides a forum for discussing leverage and its uses and the meaning of negative owners' equity.
Keywords
Financial Statements; Financial Strategy; Asset Management; Financial Management; Business Conglomerates; Borrowing and Debt; Business and Shareholder Relations; Capital Structure; Equity; Private Equity; Chemical Industry
Citation
Bruns, William J., Jr., and Julie H. Hertenstein. "FMC Corp.: A Recapitalization." Harvard Business School Case 191-084, November 1990. (Revised June 1993.)
