Debtors in technical default may be required to reclassify short-term debt as long-term debt unless the creditor waives or loses the right to demand payment.

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When a debtor is in technical default, they may be required to reclassify short-term debt as long-term debt unless the creditor waives or loses the right to demand payment. This is because long-term debt typically has a lower interest rate than short-term debt, and reclassifying the debt can help the debtor avoid default and maintain their creditworthiness.

Debtors in Technical Default May Be Required to Reclassify Short-Term