Debt restructuring

From Wikipedia, the free encyclopedia

Debt restructuring is a plan for business, which is made to make possible to continue business operation without danger from debt. It is usually cheaper and safer than bankruptcy. The only cost associated with a business debt restructuring is the time to negotiate with bankers, creditors, tax authorities and suppliers.

In United States, during debt restructuring, debts on average receive a 45% discount. Chapter 11 bankruptcy costs at least $50,000 in lawyer and court fees, with costs over $100,000 common. By some measures, only 20% of firms survive Chapter 11 filing.

[edit] Bibliography

• Cross Border Debt Restructuring: Innovative Approaches for Creditors, Corporate and Sovereigns

by Esteban C. Buljevich ISBN 1-84374-194-6