If a company is having trouble paying its obligations, a modification of terms can be granted in the form of interest rate reduction, maturity date extension, and/or a reduction in the amount owed.

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A modification of terms is a common approach for companies facing financial difficulties, allowing them to renegotiate the conditions of their obligations to make them more manageable. This can include reducing the interest rate, extending the maturity date, or reducing the total amount owed.

If a Company Is Having Trouble Paying Its Obligations, a Modification