debt for equity swap

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. Glossary of UK, US and international legal terms. . 2010.

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  • 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 transaction in which debt is swapped for equity. It often accompanies the reorganization of companies in financial distress …   Big dictionary of business and management

  • 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-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-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-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 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

  • debt swap — A set of transactions in which a firm buys a country s dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called a debt for equity swap. Bloomberg Financial… …   Financial and business terms

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