# Exchange Debt for Equity

**IRI:** https://folio.openlegalstandard.org/R81gIxZEycEyh9ymjYjs9qK

## Labels

**Preferred Label:** Exchange Equity for Debt

**Alternative Labels:**

- Debt Conversion
- Debt-to-Equity Swap
- Equity Conversion
- Equity-to-Debt Swap

## 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.

## Sub Class Of

- https://folio.openlegalstandard.org/R9QUQK65GB15xLVfXkpiW5r

**Deprecated:** False