Recapitalization restructures a company's securities to change distribution, priority, and economic rights within the existing entity. Recapitalization is a corporate financing arrangement whereby a company adjusts its stock, bonds, or other securities as to amount, income allocation, or priority among claimants, effectively reshuffling the capital structure within the existing corporate entity; it involves reclassification or alteration of securities rights and the relative ranking of claims while preserving the corporation's legal continuity.