debt restructuring


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Debt restructuring

Modification of the terms of a loan to provide relief to a debtor who could otherwise default on payments. The restructuring may involve extending the period of repayment, reducing the total amount owed, or exchanging a portion of the debt for equity in the debtor company. Also see extension, composition, debt-for-equity swap.

Debt Restructuring

The process of a person or business negotiating and agreeing with its creditors to reduce its debt or to revise a repayment plan. Debt restructuring often occurs when a person or company has taken on too much debt and is in danger of bankruptcy. Debt restructuring is beneficial to the person or company requesting it because it often results in a significant discount and/or a more flexible repayment schedule. It is usually less expensive than a bankruptcy would be. Likewise, it is beneficial to the creditors because a bankruptcy will likely result in some debt being discharged; creditors generally prefer debt restructuring because they would rather be paid less than not paid at all. See also: debt-to-equity swap, restructuring, capital structure.

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.
References in periodicals archive ?
Penney has hired advisers to explore debt restructuring options that would buy more time for struggling retailer to establish a turnaround, Reuters' Jessica DiNapoli and Mike Spector report, citing people familiar with the matter.
The new law has also made changes to the required reserves, as well as debt restructuring.
announced that it has completed its previously announced debt restructuring. The terms and conditions of the debt restructuring are described more fully in a Current Report on Form 8-K which the Company filed with the Securities and Exchange Commission on July 8, 2019.
The affirmation of the IDR reflects ongoing debt restructuring for Elli with the standstill agreement now extended to end-September 2018, after Elli missed two coupon payments on its existing debt.
The country will undoubtedly require a major debt restructuring in coming years in light of the huge, unmanageable debt burden (estimated to be $150 billion or greater) facing the Republic of Venezuela and its state-owned oil company, PDVSA, as well as the growing number of payment defaults and the associated build-up of significant payment arrearages (estimated now to exceed $6 billion).
ICRA is also skeptical over the strategic debt restructuring scheme (which gives banks powers to change management) preventing loans from going bad.
The NPS also asked the Korea Development Bank, the shipbuilder's main creditor, to put off a decision on whether to accept the debt restructuring plan by three months to conduct a due diligence review of Daewoo.
DUBAI: Property developer Nakheel, which was at the center of Dubai's debt crisis in 2009, has finished recovering from a $16 billion debt restructuring by repaying an Islamic bond this month, its chairman said.
Summary: DubaiEe's Limitless reached a debt restructuring deal with its lenders and would make an early payment of AED 2.1 billion (US$ 564 million) to banks and trade creditors this month, as per a company statement.
Muscat, May 30 (ONA) A specialized banking seminar entitled "Debt Restructuring in Banks" opened at City SeasonS Hotel Muscat today.
US-based retail property manager JLL (NYSE: JLL) has acquired US-based lease and debt restructuring firm Huntley, Mullaney, Spargo and Sullivan, Inc., the company said.
NEW YORK (CyHAN)- The General Assembly today (10 Sept) approved a resolution on sovereign debt restructuring in response to Argentina's "vulture funds" crisis and growing concerns about sovereign debt problems elsewhere.