What Is Debt Restructuring?

Debt restructuring refers to a written agreement between the debtor and the debtor under the financial difficulties of the debtor.

The parties in debt restructuring refer to debtors and creditors.

Corporate debt restructuring pactions should generally be handled in accordance with the following provisions:

1, paying off debts with non monetary assets shall be decomposed into the pfer of relevant non monetary assets and the payment of debts according to the fair value of non monetary assets, two items.

2, where a creditor's equity interest is pferred, it should be decomposed into two businesses: debt liquidation and equity investment.

3, the debtor should confirm the debt restructuring income according to the difference between the amount of the debt paid off and the tax base of the debt, and the creditor shall confirm the loss of debt restructuring according to the difference between the amount of the debt received on the basis of the tax burden calculated below the creditor's rights and the tax base.

4, the debtors' income tax related matters remain unchanged in principle.