debt-for-equity swap


debt-for-equity swap
A transaction in which debt is swapped for equity. It often accompanies the reorganization of companies in financial distress

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • debt for equity swap — A capital reorganisation of a company in which a creditor converts indebtedness owed to it by a company into one or more classes of that company s share capital (which may not be equity share capital in the strict sense). Practical Law Dictionary …   Law dictionary

  • Debt for Equity Swap —    When a debtor country, usually with economic problems or a deteriorating credit rating, uses its local currency to buy back its foreign debt at a discount in line with market conditions. Creditors then use that local currency to invest in… …   Financial and business terms

  • debt-for-equity swap — A swap agreement to exchange equity/ returns for debt returns or the converse over a prearranged length of time. Bloomberg Financial Dictionary …   Financial and business terms

  • Debt-for-nature swap — Debt for nature swaps are financial transactions in which a portion of a developing nation s foreign debt is forgiven in exchange for local investments in environmental conservation measures. Contents 1 History 2 How Debt for Nature Swaps Work 3… …   Wikipedia

  • debt-for-equity — UK US adjective ► FINANCE used to describe a situation in which shareholders in a company are given bonds to replace their shares: »Its lenders agreed to a debt for equity swap to save the company. »The company extended its debt for equity offer… …   Financial and business terms

  • debt-equity swap — A swap agreement to exchange equity/ returns for debt returns or the converse over a prearranged length of time. Bloomberg Financial Dictionary * * * debt equity swap debt equity swap ➔ swap2 * * * debt equity swap UK US (also debt/equity swap …   Financial and business terms

  • Equity swap — Produits dérivés financiers Produits fermes Forwards (Contrat de gré à gré) Futures (Contrat à terme) Swaps (Échange financier) Produits optionnels Options et Warrants Credit default swap (couvertures de défaillance) …   Wikipédia en Français

  • Debt/Equity Swap — A refinancing deal in which a debt holder gets an equity position in exchange for cancellation of the debt. There are several reasons why a company may want to swap debt for equity. For example, a firm may be in financial trouble and a… …   Investment dictionary

  • debt/equity swap — A swap agreement to exchange equity/ returns for debt returns or the converse over a prearranged length of time. Bloomberg Financial Dictionary …   Financial and business terms

  • Debt restructuring — is a process that allows a private or public company – or a sovereign entity – facing cash flow problems and financial distress, to reduce and renegotiate its delinquent debts in order to improve or restore liquidity and rehabilitate so that it… …   Wikipedia


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