Transfer to a Newco<\/u><\/a>.<\/li><\/ul>One such option is when creditors agree to cancel a portion, or all, of a company’s outstanding debts in exchange for equity in the business then it is a debt for equity swap.\u00a0<\/p>
When the outstanding debt and the company’s assets are significant and forcing the business to close its operations, would be ineffective then the option of this swap is worthwhile.<\/p>
A company seeking to debt restructure would want to renegotiate with its bondholders to get a portion of the outstanding interest payments to be written off or not to repay a portion of the balance.<\/p>
A callable bond is issued by a company to protect itself from a situation in which it can’t make its interest payments.\u00a0<\/p>
The issuer in times of decreasing interest rates can redeem a bond with a callable feature.\u00a0<\/p>
Because the existing debt can be replaced with new debt at a lower interest rate the callable bond feature allows the issuer to restructure debt in the future.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t