debt-debt swap
(DDS)
Noun
A debt restructuring by which old debt is novated between the same debtor and creditor, with amended terms and conditions and/or a new principal amount, or the debtor obtains funds from a new creditor and uses the proceeds of the new loan to repay previous creditors.
Synonym(s):
- debt-for-debt exchange; debt-for-debt swap; loan restructuring.