Tread carefully when considering debt-to-equity restructuring
26 July 2023
Converting or exchanging debt that is owed by a company into shares in that same company has long been used... as a debt restructuring tool. There are, however, very fine lines that surround this solution and it needs to be structured correctly to ensure that no unintended tax consequences arise. In this article, we briefly highlight a few considerations in relation to such restructuring.