The client has said that they want this to be shown as Equity and not as a loan to the director. They have said they understand the implications of this and that it will be very difficult to then withdraw again at a later date. They have asked for the different options available to them in order to convert the debt to equity. Apr 16, 2016 · Exchange of debt for equity. Where a borrower is in difficulties, a creditor may take shares in the borrower instead of a repayment. This is usually called a debt/equity swap, and may be part of a ...

One of the methods used by creditors to provide breathing space to their distressed debtors is to convert the debt owed to equity shares in the debtor company. The mechanics of how the conversion of debt to shares takes place commonly involves the company first issuing shares to the creditor for the ... The client has said that they want this to be shown as Equity and not as a loan to the director. They have said they understand the implications of this and that it will be very difficult to then withdraw again at a later date. They have asked for the different options available to them in order to convert the debt to equity.