Wisconsin Adjustments in the event of reorganization or changes in the capital structure refer to certain legal provisions that may come into play during a corporate restructuring or when there are alterations in a company's capitalization. These adjustments aim to address the interests of shareholders, creditors, and other stakeholders affected by such changes. Various types of Wisconsin Adjustments exist to cater to specific circumstances, including the following: 1. Debt-for-Equity Swap: This adjustment involves converting a company's outstanding debt obligations into equity ownership. It allows creditors to exchange their claims for shares, giving them an opportunity to become shareholders of the reorganized entity. 2. Stock Split: In certain cases, companies may opt for a stock split, also known as a stock dividend. This adjustment involves dividing existing shares into a greater number of shares without altering the total value of shareholders' equity. This can result in increased liquidity and a lower share price, making the stock more accessible to a broader range of investors. 3. Reverse Stock Split: Conversely, a reverse stock split consolidates existing shares into a smaller number, effectively raising the share price. This adjustment may be implemented to meet listing requirements of stock exchanges or enhance the perception of a company's value. 4. Capital Reduction: A capital reduction occurs when a company reduces the nominal value of its shares, which can be accompanied by returning capital to shareholders. This adjustment might be undertaken to adjust the capital structure to align with changes in the financial position of the company. 5. Debt Restructuring: In situations where a company's debt load becomes unsustainable, a debt restructuring can be pursued. It involves modifying the terms and conditions of existing debt agreements to ease financial burdens, extend repayment periods, or reduce interest rates. Debt restructuring may be accompanied by equity injections, asset sales or conversions, or rescheduling debt payments. 6. Rights Offering: A rights offering involves granting existing shareholders the opportunity to purchase additional shares at a discounted price before they are offered to the public. This type of adjustment allows existing shareholders to maintain or increase their ownership percentage while providing the company with additional capital. 7. Convertible Securities: Companies may issue convertible securities, such as convertible bonds or preferred stock, as a means of raising capital while providing investors with the ability to convert their securities into common stock at a later date. This adjustment allows companies to address their short-term financing needs while potentially providing potential upside for investors. Wisconsin Adjustments in the event of reorganization or changes in the capital structure play a critical role in maintaining transparency, fairness, and protection of stakeholders' interests during transformative corporate events.