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Nedžad Polić, PhD
Šefkija Botonjić, PhD


This paper focuses on a restructuring process from several aspects, but in
essence it considers its main objective - value generation and increase. First, it
introduces the basic concept of restructuring and a brief theoretical background
of its importance. This process is determined by several causes of company
distress, the situation that precedes the necessity to restructure. In order to
accomplish a successful restructuring, one should be familiar with techniques
and methodology required for objectives defined prior to the implementation
phase. The core interest of any restructuring process is a company value
increase. Therefore, the basic understanding of the value concept and its estimate
is needed. In order to provide not only theoretical framework for this very
process, but also a practical view of its possible range, the paper contains a brief
flow of significant activities, both prior and during the restructuring process of
the “Natron dd Maglaj” company. It reveals the trend of a free cash flow, a
widely used measure of a value creation, made by a company founded through
the venture of “Natron dd Maglaj” and “Hayat Holding”, a Turkish investor
elected to manage the restructuring project. Findings of the paper show real
potentials of the restructuring process once it is properly carried out and
managed within acceptable assumptions even in almost inevitable company
failure situation, as in the case of “Natron dd Maglaj”.

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