Corporate Debt Restructuring: Sapient Services
What Is Corporate Debt Restructuring? Reorganizing a company's existing debts in order to recover its liquidity and keep it operating is known as corporate debt restructuring . It is frequently accomplished through negotiation between financially troubled businesses and their creditors, including banks and other financial institutions, by lowering the total amount of debt the business has, as well as by reducing the interest rate the business pays while lengthening the time it has to repay the obligation. Occasionally, creditors will forgive a portion of a company's debt in return for an equity stake in the business. Such agreements are preferable to a more involved and costly bankruptcy, which is frequently the last chance for a struggling company. The rearrangement of a distressed company's outstanding debts to its creditors is referred to as corporate debt restructuring . Restoring a company's liquidity is the goal of a corporate debt restructuring so that it can ...