Editing Debt restructuring (section)

{{Short description|Process of renegotiation regarding an organization's, or sovereign entity's delinquent debts}}
{{Distinguish|Refinancing|Debt consolidation}}
{{Multiple issues|
{{Globalize|article|Europe|date=May 2017}}
{{more citations needed|date=March 2018}}
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'''Debt restructuring''' is a process that allows a private or public company or a sovereign entity facing cash flow problems and [[financial distress]] to reduce and renegotiate its delinquent [[debt]]s to improve or restore [[accounting liquidity|liquidity]] so that it can continue its operations.

Replacement of old debt by new debt when not under financial distress is called "[[refinancing]]". Out-of-court [[restructuring]]s, also known as '''{{visible anchor|workout}}s''', are increasingly becoming a global reality.<ref>{{Cite web|url=http://siteresources.worldbank.org/INTLAWJUSTICE/Resources/OutOfCourtDebtRestructuringBeforeTypesetting.pdf|title=Out-of-Court Debt Restructuring|page=54}}</ref>