Informal debt restructuring
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Informal debt restructuring is an agreement between a troubled firm and its creditors to change existing debt terms. An extension postpones the required payment date; a composition is a reduction in creditor claims.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Informal debt restructuring. An agreement between a troubled firm and its creditors to change existing debt terms. An extension postpones the required payment date; a composition is a reduction in creditor claims.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
