What is debt equity swapping?
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morty
Apprentice
Joined: 08 Nov 2004
Posts: 10
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 Posted: 06/07/08 - 08:51 Post subject: |
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| A friend of mine who is a shareholder in one company that is undergoing quite a lot of changes at the moment recently told me that there might well be an offer of debt equity swapping. This is something I have never heard of. Can you tell me what it is? |
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shelden
Apprentice
Joined: 02 Feb 2005
Posts: 3
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| Posted: 07/06/08 - 23:23 Post subject: |
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| This is a decision that a company sometimes males when it is restructuring or reorganizing their finances. When a debt/equity swap is on offer, it means that the shareholders have an option to swap their equity (shares) for debt (bonds) in the same company. This can sometimes be very favorable. |
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