As I briefly mentioned a little while ago, any change in the Terms and Conditions of the loan or credit, especially in respect of its servicing, is called restructuring of loan/ debt. Corporate debt restructuring is a specialised institutional mechanism for restructuring large exposures involving more than one lender under consortium/multiple banking arrangements. 7.
Stijn Claessens of the World Bank has defined and explained in detail the term “restructuring” in his seminal paper “Policy Approaches to Corporate Restructuring around the World: What Worked, What Failed?” I quote “Restructuring refers to several related processes: recognizing and allocating financial losses, restructuring the financial claims of financial institutions and corporations, and restructuring the operations of financial institutions and corporations.