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 contraction of Data On October 5, 1992, Marriott Corporation announced their close to restructure the company by splitting itself into two distract companies. The first of the two companies, Marriott international (MI), would manage and franchise oer 700 hotels and motels. In addition, it would manage victuals and facilities for several thousand businesses, schools, solitude homes and health-care tryrs. On the other hand, toy with Marriott (HM), which was the second of the two companies, was to ram home most of the hard assets. It would testify 139 hotels or motels, 14 seclusion communities, and nearly 100 restaurants/shops at airports and along toll roads. The paint element in the restructuring end was that Host Marriott was to keep the debt associated with its assets, travel to about $2.9 billion. Marriott International would so only have junior-grade debt after restructuring. Their respective risks as investments were reflected through their new aegis ratings, with HM being rated with a single B by Standard & Poors, episode MI received a rating of single A - both deviating from the pre-restructured companys rating of BBB. To inspection and repair alleviate HMs position, MI was to raise a $630 million song of credit to HM, though the cultivation date of the line was sort of than the maturities of many of the bond issues outstanding.

On the part of the pctholders of the former company, unitary care of stock in each of the new companies was to be given to them for each share of stock they previously held. This resolution caused immediate and opposite consecrate movements for Marriott Corporations stocks and bonds. Stockholders were elated with the decision, while bondholders were angered, especially investors who bought bonds just that April. Nonetheless, Marriott management taste to assure bondholders... What monetary ratios did you dish on to come up with your final recommendation. I would analogous to see some financial ratios in you analysis to keep going up your recommendation. If you want to belong to a full essay, aim it on our website: Orderessay

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