Restructured Loan

Restructured Loan

A loan for which the parties have agreed to alter the terms, usually to make them more favorable to the borrower. For example, the borrower may restructure a loan to receive a lower interest rate or monthly payment. Restructured loans are most common if the borrower states that he/she can no longer afford payments under the old terms. For example, a borrower may have to accept a new job with less income, forcing a tighter budget.
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The restructured loan has maturity rate extended to March 2013 and an interest rate at 375 basis points over LIBOR.
This assistance model provides that the state issues guarantees to banks if the borrower with a restructured loan gets into trouble again; the state will continue the monthly payments in the borrower's place, until completion of the program, or until the borrower becomes solvent again.
115 applies to a loan that was restructured in a troubled debt restructuring involving a modification of terms if the restructured loan meets the FASB's definition of a security in paragraph 137 of the statement.
When there is an impairment but not a restructured loan, the impaired loan is not measured at a market rate of interest but at the same discount rate used at the inception of the loan.
Simplistically, these approaches involve reporting the restructured loan as:
Fair value for each restructured loan was determined based upon a cash flow analysis of the underlying collateral performed by management.
Todd Bruce, President and CEO of Crystallex commented, "The Company has, for some time, been executing a program to eliminate its hedge book exposure and we are pleased to have closed out all remaining gold forward sales and call options transactions in a restructured loan arrangement with Standard Bank which will permit Crystallex to significantly extend the payment period, and more predictably manage its cashflow in a rising gold price environment.
Inclusion of restructuring as a credit event may provide an extra layer of security for the protection buyer in the event of credit deterioration of the reference entity that results in a restructured loan, while potentially imposing a greater cost on the protection seller.
The property is under contract for sale with a partial assumption of the modified and restructured loan.
CCC GlobalCom Corporation (OTCBB:CCGC), an emerging provider of high-value telecommunications solutions, announced today its signing of a restructured loan agreement for its wholly owned subsidiary (Ciera Network Systems) with RFC Capital Corporation, a subsidiary of Textron Financial.
ASX) will offer emergency accommodation, expedited insurance claims and restructured loans.
Loans to private individuals accounted for the majority of the restructured loans, at e1/42.