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Challenges of debt restructuring Some of these negative impacts include lower credit rating, higher borrowing costs or dilution of ownership. Lastly, it can create moral hazard or adverse selection problems by encouraging the debtor to overborrow or underperform, or by attracting opportunistic creditors.

A restructuring support agreement is a legally binding contract that protects both debtors and creditors in a bankruptcy proceeding by outlining the responsibilities of each in a consistent and agreed-upon manner. A restructuring support agreement is sometimes referred to as a plan support agreement.

A Restructuring Plan is a formal arrangement between a company and its creditors and/or its shareholders. It may be used by companies facing financial difficulties that are capable of being rescued as a going concern (there is no need to wait for imminent insolvency).

Restructuring deals are transactions that involve changing the terms, conditions, or ownership of a company's debt or equity, or selling or spinning off some of its assets or businesses.

The different types of restructuring include legal restructuring, turnaround restructuring, cost restructuring, divestment, spin-off, repositioning restructuring, and mergers and acquisitions.

At its core, an RSA acts as a 'lockup agreement,' ensuring that the signing stakeholders ? usually financial creditors, but sometimes shareholders or other stakeholders too ? will support and not vote against a plan that is consistent with the terms of the agreed restructuring.

Changes in a company's organizational structure, such as decreasing its hierarchy level, revamping job roles, shrinking the workforce, and modifying reporting connections, are all examples of operational restructuring.

An agreement entered into by a borrower and its lenders in the course of a restructuring of the borrower's debts. The agreement sets out the basis on which those lenders will continue to lend to the borrower and may, for example, consolidate all the outstanding lending arrangements into one master agreement.

A support agreement is a document that defines the rights and obligations of one more party offering services or goods to another party. A support agreement can be a technical or software support agreement, but it can also be a stockholder or shareholder support agreement.

Master Restructure Agreement means the Master Restructure and Debt Exchange Agreement, dated as of the date hereof, among Pac-Van, GFNA, the lenders party to the Existing Investment Agreement and the Administrative Agent.