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Debt-for-Equity Swap

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Debt-for-equity swap
A swap agreement to exchange equity/returns for debt returns or the converse over a prearranged length of time.

Debt/Equity Swap
A situation in which a debtor (which is a company) replaces the debt held by one or more creditors with a percentage of ownership in the company. A debt-equity swap often occurs if the company would otherwise be unable to repay the creditor(s) anything without going bankrupt. However, the swap may be a result of change from a debt-based to an equity-based capital structure. In either case, these swaps are often considered part of a company's attempt to restructure itself. Some debt agreements restrict the debtor's ability to force a debt-for-equity swap.


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and its key unit due to a growing likelihood of their debt forgiveness or debt-for-equity swap deal.
CAPTION(S): Gala Coral is also in negotiations with its bankers over an equity deal Camera chain Jessops is among those considering a debt-for-equity swap
The task force wants a capital boost of 300 billion yen for JAL of both public and private-sector money, as well as debt relief worth 250 billion yen through a debt waiver and debt-for-equity swap scheme, the Nikkei said.
 
 
 
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