Capital Structure Financial Distress
Capital Structure Financial Distress refers to the situation where a company is experiencing financial difficulties due to the way it has structured its capital. This can occur when a company has taken on too much debt or has a high proportion of fixed costs, making it difficult to meet its financial obligations. Financial distress can lead to bankruptcy or insolvency if not properly managed. Companies in this situation may need to restructure their capital, negotiate with creditors, or seek outside financing to alleviate the financial strain.