Restructuring: Difference between revisions
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imported>Doug Williamson (Classify page.) |
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1. ''Financial distress''. | |||
Converting the existing debt of a financially distressed borrower into other debt or sometimes equity, which the distressed borrower is more likely to be able to service in the future. | |||
Such restructuring usually involves losses for the creditors whose debt investments are converted in this way. | |||
2. ''Financial strategy''. | |||
Other significant and long term changes, usually undertaken to achieve financial improvements for the future. | |||
For example, ''"The Brazilian financial system has experienced a deep process of restructuring, mainly the consolidation of the number of banks, reduction of a public sector presence in the market and an increase in the participation of foreign banks."'' ([[Brazil]]). | |||
== See also == | == See also == | ||
* [[Brazil]] | |||
* [[Equity]] | * [[Equity]] | ||
* [[Haircut]] | * [[Haircut]] | ||
* [[Exchange creditors]] | * [[Exchange creditors]] | ||
* [[Holdout creditors]] | * [[Holdout creditors]] | ||
* [[ | * [[Rights upon future offers]] | ||
[[Category:The_business_context]] | |||
[[Category:Corporate_finance]] | |||
[[Category:Long_term_funding]] | [[Category:Long_term_funding]] | ||
[[Category:Compliance_and_audit]] | [[Category:Compliance_and_audit]] | ||
[[Category:Manage_risks]] | [[Category:Manage_risks]] | ||
[[Category:Risk_frameworks]] | [[Category:Risk_frameworks]] | ||
Revision as of 14:59, 10 October 2018
1. Financial distress.
Converting the existing debt of a financially distressed borrower into other debt or sometimes equity, which the distressed borrower is more likely to be able to service in the future.
Such restructuring usually involves losses for the creditors whose debt investments are converted in this way.
2. Financial strategy.
Other significant and long term changes, usually undertaken to achieve financial improvements for the future.
For example, "The Brazilian financial system has experienced a deep process of restructuring, mainly the consolidation of the number of banks, reduction of a public sector presence in the market and an increase in the participation of foreign banks." (Brazil).
