Debt/Equity Swap

(redirected from Debt-to-Equity Swap)

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.
Mentioned in ?
References in periodicals archive ?
The Detroit-based automaker has proposed to invest $2.8 billion in the Korea unit but demanded the state-run KDB, which is the second-largest shareholder with a 17-percent stake, participate in its debt-to-equity swap plan.
Korea urged to heal distrust between gov't, firms
Donnet said that the firm was not looking to increase its holdings in Italian banks after becoming the second biggest shareholder in bailed out lender, Monte dei Paschi di Siena, through a debt-to-equity swap.
Generali CEO says not planning for conversion of Carige bond
To avoid defaulting, Sri Lanka agreed to a debt-to-equity swap with China.
Indian think tank to Manila: Beware of Beijing-funded projects
A debt-to-equity swap would increase risk in banks' portfolios.
Fitch: China Debt-Equity Swap Plan Would Be Negative for Banks
As part of the debt-to-equity swap, BES will place 294m new ordinary shares.
-Portugal's BES raises tier 1 capital ratio to 9% through debt swap
Swiss car component manufacturer iQ Power (ETR:IQPB) said today it has acquired a 36.86% stake in Slovenian battery manufacturer Akubat for an undisclosed sum, in a debt-to-equity swap deal that makes it the largest shareholder in the firm.
Swiss iQ Power buys stake in Slovenian Akubat
Earlier Wednesday, GM said it has failed to secure the consent of enough holders of GM bonds for its debt-to-equity swap plan.
LEAD: N.Y. stocks tumble on rising long-term rates
Lenders took the reins of South Korea's fourth-largest vehicle maker last year through a pounds 561 million debt-to-equity swap that rescued it from collapse.
Korea move for Citroen
The government announced a bailout plan for DSME last week, under which the KDB and Export-Import Bank of Korea (Eximbank) will provide 2.9 trillion won of loans on the condition the company's creditors and bondholders agree to a 2.9 trillion won debt-to-equity swap and a 900 billion won debt rescheduling.
Creditors expected to agree on DSME bailout
Chinese state-owned banks have started to establish their own asset management arms to conduct debt-to-equity swap business for their peers.
Chinese banks setting up AM units
The shareholders will also consider a EUR5m (USD6.9m) debt-to-equity swap of MKB Romexterra's arrears to its controlling shareholder, Hungary-based bank MKB.
-Romanian MKB Romexterra Bank eyes EUR22m cap hike
The government last week announced a bailout plan for DSME, under which the KDB and Eximbank provide 2.9 trillion won of loans on condition the company's creditors and bondholders agree to a 2.9 trillion won debt-to-equity swap and a 900 billion won debt rescheduling.
DSME bailout plan faces setbacks

Financial browser ?
Full browser ?