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  • November 1990 (Revised June 1993)
  • Case
  • HBS Case Collection

FMC Corp.: A Recapitalization

By: William J. Bruns Jr. and Julie H. Hertenstein
  • Format:Print
  • | Pages:10
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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.)
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About The Author

William J. Bruns

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Related Work

    • January 1994
    • Faculty Research

    FMC Corporation: A Recapitalization (Abridged), Part I

    By: William J. Bruns Jr. and Julie H. Hertenstein
    • January 1994
    • Faculty Research

    FMC Corp.: A Recapitalization (Abridged), Part II

    By: William J. Bruns Jr. and Julie H. Hertenstein
Related Work
  • FMC Corporation: A Recapitalization (Abridged), Part I By: William J. Bruns Jr. and Julie H. Hertenstein
  • FMC Corp.: A Recapitalization (Abridged), Part II By: William J. Bruns Jr. and Julie H. Hertenstein
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