What Is Involved in the Debt Restructuring Process?

Debt restructuring can be executed through various methods, including:
1. Lowering the Interest Rate: Negotiating a reduced interest rate to decrease overall repayment costs.
2. Extending the Repayment Date: Prolonging the loan period to ease financial pressure.
3. Changing Terms of Sanction: Modifying terms such as margin requirements.
4. Converting Debt to Equity: Transforming debt into equity or similar financial instruments.
5. Consolidating Multiple Loans: Merging several loans into a single loan to simplify repayments.
6. Restructuring the Repayment Schedule: Adjusting the repayment timeline while remaining within the original timeframe.
7. Preventing Business Disruptions: Ensuring operations continue smoothly without interruptions due to debt issues.
8. Timely Repayment of Dues: Making repayments on time based on anticipated future cash flows.