What is debt restructuring?

Debt restructuring is a process used by companies or individuals to renegotiate the terms of their existing debt obligations with creditors. This typically involves altering the repayment schedule, reducing the total amount owed, or extending the maturity date to make the debt more manageable. The goal is to avoid default, improve financial stability, and create a plan that benefits both the debtor and the creditors. Debt restructuring can be done voluntarily or through legal proceedings, depending on the situation.