Debt Restructuring
/ˈdɛt rɪˌstrʌkʧərɪŋ/
Definitions
- (n.) A legal or financial process whereby a debtor and creditor agree to alter the terms of debt to avoid default or bankruptcy.
The company entered into debt restructuring to manage its outstanding loans and prevent insolvency.
- (n.) The modification of the schedule, amount, or conditions of a debt within formal bankruptcy proceedings.
Debt restructuring is often approved by a court during a bankruptcy case to ensure repayment feasibility.
Related terms
See also
Commentary
Debt restructuring is a key tool in insolvency and financial distress contexts; clarity in contract terms and regulatory compliance is vital when drafting restructuring agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.