Lawyer Chantelle Adadevoh returns to PA with her latest articles that gives advisers the low down on debt for equity swaps
Uncertain economic environments can place pressure on businesses, particularly when it comes to managing debt, and IFAs are not immune to this. A company may find itself in a position where it cannot meet its financial obligations. One mechanism available to help companies' debt management is a debt for equity swap (DFES). What is a DFES? A DFES is a financial restructuring process where an overleveraged company exchanges a portion of its outstanding debt for the issue of shares. This arrangement can be advantageous for both the company and the creditor (the lender). From the compan...
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