How can a Subsidiary become Free from Foreign Parent Debt

Volodymyr O. Yakubovskyy, Kateryna Y. Safronenko

Many multinational companies have experienced rather difficult times doing business in developing countries for the last five years, given that even economies in developed countries are still struggling to fully recover from the global financial crisis. Under these circumstances, one can quite often see those global companies restructuring their network of subsidiaries in emerging economies to restore a healthy business and get the books in order. This is important for refinancing or attracting investment. Simple cost cutting and divesture of less performing industries and markets is also the reason for such restructuring…