Swapping less interest loans with more interest loans
Modification of the terms of a loan to debtor who could default on payments
Closing all outstanding loans
Going for more and more borrowings
✅ The correct answer is B.
Debt restructuring refers to modification of the terms of a loan to provide relief to a debtor who could otherwise default on payments. The restructuring may involve extending the period of repayment, reducing the total amount owed, or exchanging a portion of the debt for equity in the debtor company. Also see extension, composition, debt-for-equity swap.
Debt restructuring refers to modification of the terms of a loan to provide relief to a debtor who could otherwise default on payments. The restructuring may involve extending the period of repayment, reducing the total amount owed, or exchanging a portion of the debt for equity in the debtor company. Also see extension, composition, debt-for-equity swap.