Chapter 11 Bankruptcy, under the Bankruptcy Reform Act of 1978, allows for the reorganization of partnerships, corporations, municipalities, and sole proprietors facing financial difficulties to remain operational while they restructure their debts.
Chapter 13 of the Bankruptcy Reform Act of 1978 refers to debt restructuring, allowing individuals to repay creditors over time, typically through a repayment plan.
A Company Voluntary Arrangement (CVA) is a legally-binding arrangement between a company and its creditors to restructure debt. This process helps businesses avoid bankruptcy by agreeing to pay back a portion of what they owe over a fixed period.
A Company Voluntary Arrangement (CVA) is a legally binding agreement between a company and its creditors to restructure debt and avoid liquidation.
A composition in accounting refers to an agreement between a debtor and creditors, where the debt is partially forgiven in exchange for a proportion of what is due. This can be formalized through a deed of arrangement or an individual voluntary arrangement.
Debt restructuring involves adjustments to the terms of debt, either through legal action or by agreement, to provide more favorable conditions for the debtor to meet financial obligations. It can involve both corporate and sovereign entities.
Recontracting is the renegotiation of contracts between a company in financial distress and its creditors to establish more favorable terms.
Repackaged perpetual debt is a financial instrument originally issued as perpetual debt, which carries a high-interest rate for a set number of years before interest payments cease or diminish significantly. The residual value is negligible, and the issuer often transfers the debt to a friendly third party for redemption at a nominal amount.
