Debt restructuring is the process of altering the terms of an existing debt agreement to provide relief to the borrower, often involving changes to interest rates, payment schedules, or the total amount owed. This process is typically initiated when a borrower is struggling to meet their obligations, and it can lead to improved cash flow and financial stability. It plays a significant role in corporate restructuring and divestitures, as companies seek to regain profitability and enhance their balance sheets.
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