Debt-to-equity swaps are gaining ground in corporate restructurings, allowing companies to reduce debt without requiring a cash outlay while giving creditors the opportunity to participate in potential future value creation – and maximizing their own recovery.
In a report published by Valor International, our partner Thiago Dias Costa, from Restructuring and Insolvency practice, discusses the benefits of this mechanism and notes that debt-to-equity conversion alone does not guarantee a successful restructuring: the plan must demonstrate concrete prospects for recovery, growth, and value creation. Learn more.
