Accordion operation

A special corporate transaction which consists of a simultaneous reduction and increase in share capital, in order to restructure a company's finances. First, the company's share capital is reduced to zero, or below the legal minimum, and at the same time it is increased to a figure equal to or greater than that minimum figure. It is not compulsory to reach the volume that existed prior to the reduction. These transactions are usually linked to a new project, such that after adapting the share capital figure to the losses that have been registered, the company waits for new financial resources as a result of the share capital increase.