What Are the Steps Involved in Debt Restructuring?
The debt restructuring process typically involves the following steps:
1. Assessment of Financial Situation: The company must thoroughly assess its financial situation to understand the extent of the problem and identify potential solutions. 2. Proposal Development: The company then develops a restructuring proposal, outlining the new terms and how they will benefit both the company and its creditors. 3. Negotiation with Creditors: The company engages in negotiations with creditors to reach an agreement on the new terms. 4. Implementation: Once an agreement is reached, the company implements the new terms and begins to operate under the restructured debt.