What is Debt restructuring?

Question

What is Debt restructuring?

Answer 1

Debt restructuring is a process that allows a private or public company - or a sovereign entity - facing cash flow problems and financial distress, to reduce and renegotiate its deliquent debts in order to improve or restore liquidity and rehabilitate so that it can continue its operations.

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Answer 2

Add up all those little debts you have, add them all together then take out a loan to pay them all off at once.

The benefit of this is  that you have only one payment to make each month and at a lower monthly cost. Lower because the repayments are over a longer period.

If you use a company to arrange this they'll add a fee either to the total loan or to your monthly repayments......