Marriot Restructuring This is a case study on the restructuring plan of Marriot Corporation by splitting itself into two companies, namely, Marriot International and Host Marriot.

MARRIOTT RESTRUCTURING A Written Analysis of a Case by Lloyd Ty Brief abridgment of Data On October 5, 1992, Marriott Corporation proclaimed their end to restructure the company by splitting itself into cardinal separate companies. The first of the 2 companies, Marriott internationalistic (MI), would manage and certification over 700 hotels and motels. In addition, it would manage food and facilities for several gm businesses, schools, retirement homes and health-care tryrs. On the other hand, entertain Marriott (HM), which was the second of the two companies, was to deliver most of the hard assets. It would own 139 hotels or motels, 14 retirement communities, and nearly 100 restaurants/shops at airports and along financial value roads. The key element in the restructuring plan was that Host Marriott was to exert the debt associated with its assets, rounding to about $2.9 billion. Marriott International would so only pay off modest debt after restructuring. T heir respective risks as investments were reflected through their saucily security places, with HM being rated with a single B by Standard & Poors, succession MI received a rating of single A - both deviating from the pre-restructured companys rating of BBB. To help alleviate HMs position, MI was to provide a $630 million pull in of credit to HM, though the finale date of the line was sooner than the maturities of many of the bond issues outstanding.

On the part of the pctholders of the motive company, one share of stock in each of the immature companies was to be given to them for each share of stock they antecedently held. This announcement caused immediate and opposite c harge movements for Marriott Corporations st! ocks and bonds. Stockholders were elated with the decision, dapple bondholders were angered, particularly investors who bought bonds just that April. Nonetheless, Marriott management essay to assure bondholders... What monetary ratios did you base on to come up with your final recommendation. I would like to see some financial ratios in you analytic thinking to back up your recommendation. If you want to get to a honorable essay, order it on our website: OrderEssay.net

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