Workout Agreement
/ˈwɜrkˌaʊt əˈgriːmənt/
Definitions
- (n.) A negotiated agreement between a debtor and creditor to restructure debt terms outside of formal bankruptcy proceedings.
The company entered into a workout agreement with its lenders to avoid bankruptcy.
Forms
- workout agreement
- workout agreements
Related terms
See also
Commentary
Workout agreements often involve concessions like extended payment schedules or reduced interest, aiming to preserve value and avoid costly litigation.
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.