"They could always make an offer to their debt holders to swap out or renegotiate some debt, but they still need to address the pension problem, " said airline analyst William Lauer of Allegheny Capital Management.
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Barclays expects more institutions to sign up to the debt swap as they continue to ascertain their position and assess risk.
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In debt exchanges, companies typically ask creditors to swap current debt for equity, new debt with a lesser value that matures later, or a combination of the two.
The new agreement offers a range of choices for three things: what constitutes a credit event, what classes of debt it would apply to, and what types of debt can be delivered to the seller of the default swap.
Assuming Papandreou and his new finance minister, Evangelos Venizelos, manage to push their agenda through parliament, European policymakers are fettering over whether a debt roll over or a debt swap option will provide them with the best means to avoid a credit default and a change in credit ratings. (Read Papanderou Loses Support As Eurozone Hopes To Aver Contagion).
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Private bondholders have yet to agree to terms of a debt swap with Greece, and have until Thursday to do so before triggering a messy default.
The holders of the rest reluctantly agreed to a debt swap in 2005 in which they got just 35 cents on the dollar.
Domestic banks, and some corporate investors, may choose to swap debt for equity.
Markets reacted calmly to Greece's debt swap, which was accepted by 86% of holders of Greek bonds.
The package allows Norwegian banks to swap toxic debt products like mortgage-backed securities for new government bonds, which can then be used as collateral for borrowing from the central bank.
According to a Harvard Business School study, WPP persuaded its banks to swap a quarter of its debt for 47% of WPP's equity, while providing new financing.
It involved pressuring Greece's bondholders to swap their Greek debt for new IOUs that would come due far in the future.
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The bail-out deal agreed with Greece in July already included a limited move by private banks to swap existing Greek debt with longer term debt paying lower interest.
In 2001, in a desperate effort to stave off debt default, Domingo Cavallo, the economy minister, forced them to swap bonds (and cash) for long-dated or low-yielding paper.
In perhaps the most important test of Mr Taylor's ideas, Uruguay is offering to swap much of its debt for new bonds containing collective-action clauses.
In 2009, Jessops managed to avoid administration by agreeing a debt for equity swap with its lender, HSBC, that saw it taken off the stock market.
Put another way, a poor quality bank bond that no one wants because the bank is in trouble is suddenly high quality debt if the Fed is prepared to swap it for a Treasury bond.
Essentially Citigroup is contesting a decision made by Mr Bondi to exclude it from the list of Parmalat's creditors, a step that would, if upheld, keep the bank out of a future debt-for-equity swap prior to Parmalat's re-flotation on the stockmarket.
Argentina says it has achieved a debt swap that moves it a step closer to resolving the difficulties caused by its huge default eight years ago.
He says that states will be offered the chance to swap their expensive borrowings for new, cheaper debt.
For one thing, it is hard to know how much companies have in fact lengthened the maturity of their debts because the interest-rate swap market allows them to swap those fixed bond payments into cheaper floating debt, a popular strategy in the investment-grade market.
Now, as the baby boomers' promised benefits swamp the payroll-tax collections from today's workers, the government has to swap the trust funds' nonmarketable securities for marketable Treasury debt.
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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.
This downward spiral may have been exacerbated by Europe's efforts to cut the value of Greek sovereign debt without triggering a payout on credit-default-swap contracts.
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By then, the government in Kingston will need to have carried out necessary economic and fiscal reforms, and to have won a "high rate of participation of private creditors" in the debt swap.
Now Redstone says he has offered to buy Shari's 20% stake in National Amusements, or to swap it for the theater chain, if she's willing to assume some debt on that real estate.
The steps here are first swap the remarked bank debt for equity shares in mutual funds while simultaneously selling the remarked bank assets to the mutual funds.
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