Debt restructuring is an act in which a lender, for economic or legal reasons relating to the borrower's financial difficulty, grants concessions to the borrower. Restructuring normally involves modification of terms of the advances/ securities, which would generally include, among others, alteration of repayment period, repayable amount, the number/amount of installments, rate of interest, roll over of credit facilities, sanction of additional credit facility, enhancement of existing credit limits, compromise settlements where time for payment of settlement amount exceeds three months.
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