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debt restructuring
(redirected from Debt for equity swap)

   Also found in: Wikipedia 0.02 sec.
debt restructuring
An exchange of one or more new debt issues for outstanding debt issues that can occur when the new issues have interest rates and/or maturities that differ from those of the outstanding issues. For example, a firm might offer holders of 9% coupon bonds with 5 years to maturity a new bond with a higher-coupon rate and a 25-year maturity. Creditors having difficulty making interest and/or principal payments often restructure their debt to reduce the size of the interest payments and to extend debt maturity. Also called troubled debt restructuring. Compare restructuring.


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is expected to file a prepackaged plan for Chapter 11 bankruptcy protection and emerge by June with a lighter debt load, after creditors last week indicated support for a complex debt for equity swap plan.
Having recently completed a Chapter 11 Bankruptcy Reorganization, Ormet's operations remain under the control of New York's MatlinPatterson Global Advisors, who received a majority ownership of Ormet stock in a debt for equity swap that was part of the reorganization.
IFCO's debt reduction resulting from the debt for equity swap will better position IFCO to pursue growth opportunities in the European and U.
 
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