debt-equity swap
noun[C]
(alsodebt/equity swap)ukus(alsodebt-for-equity swap,debt swap)FINANCE
anagreementin which acompanyofferssharestoitscreditors(=banksandorganizationsthatlenditmoney)so they willreducetheamountofitsdebt:
The debt-for-equityswapcouldcreatemore than 1.5billionnewshares.
ECONOMICS,FINANCE
afinancialarrangementin which a country'sgovernmentgiveslocalcurrency,shares, etc. toforeigninvestorswhoagreetopaypartof the government’sforeigndebts:
The TreasurySecretaryneedstoestablishaviabledebt-equityswapprogramif ithopestoattractprivateforeigncapital.