Friday, May 27, 2011

YANG Anne, ZHANG Hong, SHAH Gourang
Tyco International: Corporate Liquidity Crisis and Treasury Restructuring

© 2011 INSEAD Case Study

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

Pedagogical 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.