Continuing from the last clip on liquidation, scholars explore another bankruptcy avenue: restructuring. Sal briefly touches on covenants with debt holders and goes into reasons a company would refrain from liquidating when facing bankruptcy. He illustrates debtor-in-possession financing on a balance sheet and explains the role of bankruptcy court in the process. Learners see how various stakeholders hire legal representation and negotiate the value of the company. He outlines motivations for equity holders as well as debt holders in determining the worth of the company for restructuring, showing two possible scenarios and which investors benefit from each.