Debt restructuring
Process of renegotiation regarding an organization's, or sovereign entity's delinquent debts / From Wikipedia, the free encyclopedia
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Not to be confused with Refinancing or Debt consolidation.
Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations.
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Replacement of old debt by new debt when not under financial distress is called "refinancing". Out-of-court restructurings, also known as workouts, are increasingly becoming a global reality.[1]