Like business bankruptcy and business failure, divestiture is most often undertaken to relieve pressure by creditors such as bondholders and banks due to the firm's relatively high debt levels.

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Divestiture is primarily a strategic decision made by a company to sell off assets, subsidiaries, or business units to focus on its core operations, improve financial health, or realign its strategy, rather than a direct response to creditor pressure.

Like Business Bankruptcy and Business Failure, Divestiture Is Most Often