Dictionary
debt for equity swap
deal whereby the creditor gets shares in the company in exchange for cancelling the debt
The final restructuring stage involved new investment, partial debt repayment and a large debt for equity swap.
Phrase Bank
- Creditors were prepared to make a debt for equity swap.
- The parties carried out a debt for equity swap whereby the debt was converted into 331,600 £1 shares in DCC.
- The purpose of the bank's actions was to obtain a substantial shareholding by way of a debt for equity swap.
- The debt for equity swap was completed in December 2009.
Additional Notes
- this may help a company avoid bankruptcy.