debt-equity swap
(DES)
Noun
A debt restructuring in which a creditor provides new equity capital in the debtor in exchange for cancellation of outstanding debt it is owed, thus improving the debtor’s capital base and reducing the debt service.
Synonym(s):
- conversion of debt into equity; debt for equity conversion; debt for equity swap; debt-for-equity exchange; debt-for-equity swap; debt-to-equity swap.