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 abridgement of Data On October 5, 1992, Marriott Corporation announced their remove to restructure the company by splitting itself into two steal companies. The first of the two companies, Marriott international (MI), would manage and franchise oer 700 hotels and motels. In addition, it would manage diet and facilities for several thousand businesses, schools, solitude homes and health-care tryrs. On the other hand, obtain Marriott (HM), which was the second of the two companies, was to economise most of the hard assets. It would profess 139 hotels or motels, 14 retirement communities, and nearly 100 restaurants/shops at airports and along toll roads. The key out element in the restructuring fancy was that Host Marriott was to keep the debt associated with its assets, round to about $2.9 billion. Marriott International would so only have downhearted debt after restructuring. Their respective risks as investments were reflected through their new protective covering ratings, with HM being rated with a single B by Standard & Poors, chronological sequence MI received a rating of single A - both deviating from the pre-restructured companys rating of BBB. To answer alleviate HMs position, MI was to fork up a $630 million field of operation of credit to HM, though the shoemakers last date of the line was so starr than the maturities of many of the bond issues outstanding.

On the part of the pctholders of the former company, one dole out of stock in each of the new companies was to be given to them for each share of stock they previously held. This resolve caused immediate and opposite scud movements for Marriott Corporations stocks and bonds. Stockholders were elated with the decision, while bondholders were angered, peculiarly investors who bought bonds just that April. Nonetheless, Marriott management turn out to assure bondholders... What monetary ratios did you sottish on to come up with your final recommendation. I would wish to see some fiscal ratios in you analysis to back end up your recommendation. If you want to quiver to a full essay, couch it on our website: Ordercustompaper.com

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