debt restructuring
Obligation terms revision
Debt restructuring is the process of renegotiating the terms of existing debt—typically extending repayment periods, reducing interest rates, or forgiving part of the principal.
Companies facing insolvency and countries in financial crisis pursue debt restructuring to avoid default: Greece underwent multiple rounds of debt restructuring during its economic crisis.
The process involves negotiations between debtors and creditors to reach terms both can accept.
- bankruptcy lawStatutes governing debt discharge
- creditorsThose owed payment
- refinancingReplacing a loan
- haircutStyling by trimming
- loan modificationAltered borrowing agreement terms
payment plan · sovereign debt · workout · forbearance · lenders · borrowers · cramdown · investors · financial advisors · legal counsel · forgiveness · austerity · distressed · negotiation · leverage · principal · bailout · IMF
- debtdebt, creditor, owe, debtor, lender
- negotiationsbargaining, offer, counteroffer, counter offer, compromise
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- debt reliefdebt relief, debt forgiveness, debt settlement, debt cancellation, debt negotiation
- financial agreementsloan agreement, credit agreement, loan contract, promissory note, loan
- financial eventsmerger, acquisition, IPO, bankruptcy, takeover
debt restructuringdebt forgiveness
Cancellation of amounts owed
debt cancellation · bankruptcy · liquidation · full payment · default
debt restructuringfinancial solvency
Ability to pay debts
fiscal health · creditworthiness · financial stability · liquidity · profitability