Troubled debt restructuring

Troubled debt restructuring,

Definition of Troubled debt restructuring:

  1. Process by which an institutional lender (such as a bank) modifies or relaxes the terms of a loan agreement to minimize the eventual loss by accommodating a borrower who is financially incapable of meeting them. According to the US Financial Accounting Standards Board standard 15 (FASB 15) restructuring of troubled loans (where no payment has been made for 90 days or more) is classified as either a loan where (1) the borrower is required to pledge additional assets as collateral, or (2) the terms of the loan agreement are modified to include, among other changes, (a) provision for outright foreclosure on the loan without applying to the courts, (b) reduction in the applicable interest-rate, (c) extension of the loan period, (d) acceptance of interest-only payments for a specified period, and/or (e) forgiveness of a part of the principal and/or accrued interest amount. See also workout arrangement.

Meaning of Troubled debt restructuring & Troubled debt restructuring Definition

Troubled Debt Restructuring,

Troubled Debt Restructuring Meanings:

  • Troubled Debt Restructuring means: An agreement between a debtor and a creditor that changes the terms of the DEBT, which may not be paid in accordance with the terms of the agreement. These agreements may include the transfer of assets that will cover all or part of the debt.

Literal Meanings of Troubled Debt Restructuring

Troubled:

Meanings of Troubled:
  1. Overcome anger or conflict.

Sentences of Troubled
  1. Disturbed personal life

Synonyms of Troubled

unsettled, tough, beset by problems, hard, problematic, full of problems, dark, stressful, difficult

Debt:

Meanings of Debt:
  1. Some, usually money, loans or debts.

Sentences of Debt
  1. I paid my debt

Synonyms of Debt

money owing, tally, financial obligation, amount due, account, outstanding payment, bill

Restructuring:

Meanings of Restructuring:
  1. Reorganizing companies to become more efficient and profitable or to adapt to changing markets.

Sentences of Restructuring
  1. Experts predict that many will suffer from bankruptcy and other reorganizations.