What Are the Different Types of Corporate Debt Relief?
Debt exemption means that during the debt restructuring process, the creditor grants a certain amount of debt relief to the debtor for the purpose of timely recovery of accounts and reducing the risk of debt. , Which is not included in a company's income, reflects the principle of prudent accounting.
Debt forgiveness
Right!
- Chinese name
- Debt forgiveness
- Foreign name
- Debt forgiveness
- Main body
- debt
- Process
- debt reorganization
- Debt exemption means that during the debt restructuring process, the creditor grants a certain amount of debt relief to the debtor for the purpose of timely recovery of accounts and reducing the risk of debt. , Which is not included in a company's income, reflects the principle of prudent accounting.
- So-called
- This method of debt exemption is often used to solve the debt problems of state-controlled listed companies, mainly for overdue bank loans. The reason why it can be operated is due to the state-owned controlling nature of major commercial banks in China and administrative intervention by government departments. Because overdue loans often lead to lawsuits, the key to the success of this approach is the effective coordination of the relationship between state-owned shareholders, listed companies, the judicial department and banks.