A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage.
|||Companies use debt restructuring to avoid default on existing debt or to take advantage of a lower interest rate.
A company will often issue callable bonds to allow them to readily restructure debt in the future. The existing debt is called and then replaced with new debt at a lower interest rate.
Companies can also restructure their debt by altering the terms and provisions of the existing debt issue.
