Tyco International: Corporate Liquidity Crisis and Treasury Restructuring

Published 25 May 2011
Reference 5710
Region Global
Summary

In 2002, Tyco International experienced a corporate crisis which put the conglomerate in danger of bankruptcy. The case follows how the company successfully tackled a short-term liquidity crisis as well as the steps taken to establish a global treasury management structure to position Tyco going forward.

Teaching objectives

This case allows students to learn and understand (i) the role and practice of corporate treasury (ii) the current trend for corporations to move from decentralised to centralised corporate treasury (iii) the regulatory environment of corporate treasury, and (iv) the importance of debt-maturity profile planning to avert a corporate liquidity crisis.

Keywords
  • Tyco Conglomerate
  • Corporate Treasury
  • Centalised Corporate Treasury
  • Liquidity
  • Debt Maturity Profile
  • Convertible Debt
  • Crisis Restructuring
  • Regulations in Asia
  • RD0511
  • AR2011
  • AR1011
  • IAF 10/11
  • IAF 2520523
  • Corporate Governance
  • Investors, Stakeholders and Accountability