What makes a company a good restructuring candidate?

A good RX candidate has an over-levered balance sheet (a financial problem) but a fundamentally viable, cash-generative operating business (not a broken business model). Ideal traits: a temporary or fixable cause of distress, enough enterprise value to justify reorganizing rather than liquidating, a manageable number of creditor classes to negotiate with, sufficient liquidity or access to DIP financing to fund a process, and assets/contracts worth preserving. If the underlying business itself is obsolete, liquidation, not reorganization, is the answer.