Financial restructuring refers to the process of reorganizing a company's financial obligations and assets to improve its financial stability and operational efficiency. This often involves renegotiating debt terms, selling off non-core assets, or altering the capital structure to reduce financial strain. The goal is to ensure the company can meet its obligations and continue operations. This process is commonly utilized by companies facing financial difficulties, such as those in bankruptcy or experiencing cash flow issues. Financial restructuring can also be a proactive strategy for businesses looking to optimize their financial health and prepare for future growth opportunities.