A voluntary reorganization of debts whereby a firm's debt obligations are reorganized according to a creditors pro-rata share of the debting firm's total debt,is called

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This describes a composition, where the debts are reorganized among the creditors based on their share of the company's total debt. An extension involves an agreement to delay payment of the debt, and creditor control refers to a situation where the creditors have control over the company's assets.

A Voluntary Reorganization of Debts Whereby a Firm's Debt Obligations