ii) Business International, The Debt Equity Swap Handbook (New York, 1989)
(5.) Government of Mexico, Ministry of Finance, Debt Equity Swap Programmes: The Mexican Experience (UNCTC: New York, 1990)
The central bank has proposed to improve the capital structure of the textile companies, the government should encourage debt equity swap
by the banks at prices higher than book value or the market value.
On March 30, the company completed the acquisition of Terra Factor Indonesia and Columbia Chrome Indonesia at a price of Rp 170 billion through debt equity swap
There is no set structure for a debt equity swap
. On a simple debt equity substitution, a bank may simply swap some of its loan for an existing class of shares of the company.
Of the total, 150 billion yen will come from the flotation of preferred shares and the remaining 140 billion yen will be procured via a debt equity swap
. Both deals will be completed May 2.
Consider the case of a debt equity swap
in which external government debt is exchanged by a claim on the capital stock owned by the domestic private sector.
Pradhan, 1991, "Debt Equity Swaps
as Bond Conversions--Implications for Pricing", Journal of Banking and Finance, 15:29-41
Finally, we examine the issue of debt equity swaps
as one of the best alternatives for surplus funds from Islamic banks.
The provision of debt equity swaps
by the banks was appreciated by the board except that proper check and balance be in place to avoid abuse of this facility.
Compound these high interest rates over time, factor in the global recession, and the rest is history: Mexico's foreign debt today is over $100 billion despite the Brady Plan, "debt equity swaps
," rescheduling, and other measures designed to reduce it.
Debt equity swaps
involving conversion into equity and debt currency swaps that convert debt into local currency liabilities contribute if they attract additional foreign equity investment or bring about a return of flight capital.