Debt – Equity Swap

Debt – Equity Swap One of the strategies of financial restructuring of a sick company, this consists in the write-off of accumulated interest and sometimes principal of creditors, who may be banks and financial institutions, in exchange of an equity stake in the company. Naturally, the company in which the creditors are thus acquiring a stake must be potentially promising, which, but for the element of debt, would have run profitably and grown.

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