Exchange Equity for Debt

Exchange Debt for Equity - An asset exchange where a party replaces debt with equity — or equity with debt — in a company. Replacing debt with equity often occurs during restructuring to improve financial stability. Replacing equity with debt can help raise capital while avoiding dilution of ownership.

Class Information

Identification

Label (rdfs)
Exchange Debt for Equity
Preferred Label
Exchange Equity for Debt
Alternative Labels
Debt Conversion, Debt-to-Equity Swap, Equity Conversion, Equity-to-Debt Swap
Identifier
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Definition and Examples

Definition
An asset exchange where a party replaces debt with equity — or equity with debt — in a company. Replacing debt with equity often occurs during restructuring to improve financial stability. Replacing equity with debt can help raise capital while avoiding dilution of ownership.
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Class Relationships

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Additional Information

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Description
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Notes
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Deprecated
False

Metadata

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