Debt Restructuring
Debt restructuring is a process that seeks to improve the financial situation of the indebted party and increase the chances of paying the outstanding debts with the creditors. Often, this process is vital to keep the cash flow balanced and thus ensure that your company meets its commitments to creditors.
A successful debt restructuring process should be able to reduce the total amount of debt the company carries, decrease or even suspend the interest rate charged, and/or lengthen the payment term.
Debt restructuring has the following procedures:
- List all debts (creditors, due date, amount, etc);
- Renegotiate debt to creditors;
- Extend the term of payment of the debt;
- Define priorities for payment of debts;
