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Debt restructuring

Changing the terms of an issue by agreement with holders: pushing back dates, cutting the coupon, writing off part of the principal.

How to read the number

The alternative to bankruptcy: creditors agree to receive less or later because liquidation would return even less.

When the metric lies

The decision is taken by a meeting and binds everyone, including those who voted against. A holder cannot decline the new terms individually.

Also known as: restructuring of an issue, workout

Related terms