A debt-for-equity swap occurs when creditors surrender a portion of their claims on the firm in exchange for an ownership position in the firm.

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A debt-for-equity swap is a common form of financial restructuring where a firm's creditors agree to reduce the amount of debt owed to them in exchange for an ownership stake in the company. This can help the company reduce its debt burden and improve its financial position.

A Debt-For-Equity Swap Occurs When Creditors Surrender a Portion of Their