Debt restructuring

This article has multiple issues. Please help improve it or discuss these issues on the talk page. (Learn how and when to remove these template messages) The examples and perspective in this article deal primarily with Europe and do not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (May 2017) (Learn how and when to remove this message) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. Find sources: "Debt restructuring" – news · newspapers · books · scholar · JSTOR (March 2018) (Learn how and when to remove this message) (Learn how and when to remove this message)

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 to improve or restore liquidity so that it can continue its operations.

Replacement of old debt by new debt when not under financial distress is called "refinancing". Out-of-court restructurings, also known as workouts, are increasingly becoming a global reality.^[1]