To win fresh funding, the borrower had to add millions of dollars in equity, get a creditor to provide a principal guarantee and settle for a new interest rate of about 3.25%.

WSJ: Commercial Property Owners Facing Higher Rates

They have legal characteristics of debt, but if things go bad you're generally the first creditor to take on the rights of an equity owner.

FORBES: Dow Jones Interactive

Since most people would not want to have IRS as a creditor, you might prefer to borrow from friends, use your home equity line of credit (the interest may or may not be deductible), or choose to pay taxes by credit or debit card.

FORBES: Losing Sleep Over Owing The IRS?

Now you can convert, like we do for corporate restructuring, some of that debt into equity if you reduce the face value and then you make the creditor effectively a shareholder in the house by giving them the upside to warrants.

FORBES: Magazine Article

At the end of 1998, 72% of the creditor banks had agreed in principle to TPI's restructuring plan, which included an equity-for-debt swap.

CNN: HOW TO MAKE ENEMIES

The finance ministry is urging creditor banks to rescue Hyundai's construction arm by swapping 1.4 trillion won of debts for equity and buying new shares worth 765 billion won.

ECONOMIST: Micro-meddler