Debt restructuring of a bankrupt firm is usually accomplished in which of the following ways:
A) An extension
B) A composition
C) A debt for equity swap
D) Some combination of a, b, or c
E) All of the above

Question

Quizplus · Accepted Answer

Debt restructuring of a bankrupt firm can be accomplished through an extension (giving more time to repay), a composition (agreeing on a lesser amount to be repaid), a debt for equity swap (creditors receive equity in exchange for canceling the debt), or some combination of these methods.

Debt Restructuring of a Bankrupt Firm Is Usually Accomplished in Which