Restructuring Plan
Corporate Credit Analysis glossary · Distressed Debt & Restructuring
Definition
A plan of reorganisation that modifies creditor claims, subject to voting and court approval in most jurisdictions. Outside the US, equivalent statutory frameworks include the UK Restructuring Plan, the Dutch WHOA, and the Singapore Scheme.
Restructuring Plan in plain English
When a company is drowning in debt it can't repay, a restructuring plan is the formal deal that rewrites who is owed what — often stretching out deadlines, cutting the amounts owed, or swapping debt for ownership. It's not something the company just decides alone: creditors vote on it and a court usually has to approve it, so a fair majority can't be blocked by a few holdouts. Think of it like renegotiating everyone's IOUs at once, with a judge refereeing to keep it fair. Different countries have their own versions of this legal process — the UK Restructuring Plan, the Dutch WHOA, and the Singapore Scheme are the equivalents outside the US.
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