logo share us

Debt Restructuring

   

Definition: Debt Restructuring is the strategy and process of modifying existing debts into new, more favorable ones. Typically it takes the form of a court ordered or mutual agreement, and is used by organizations (facing Cash Flow problems or other financial trouble) to reduce the amount of debt obligations and/or renegotiate the terms of debt agreements in order to achieve certain advantages, which typically include improving or restoring Liquidity or to prevent foreclosure and liquidation, and to continue operations. It is a major part of Recapitalization.


   
   
💡

Learn more about Debt Restructuring.



More on corporate finance: Angel Investor, Business Divestiture, Corporate Finance, Crowdfunding, Private Equity, more on corporate finance...


MBA Brief offers concise, yet precise definitions of concepts, methods and models as taught in a study Master of Business Administration.

We like to keep things short, and provide links to learn more about your subject.


add us to your desktop

Add MBA Brief to your desktop / iPad

   

© 2024 MBA Brief - Last updated: 24-6-2024  -  Privacy   |   Terms