"Work out" designates the efforts made by lenders to negotiate with the defaulted borrower a solution safeguarding their interests and allowing them to limit their loss. This can include extending the Amortisation schedule of the Debt and/or reducing the Interest rate payable and/or forgiving some of the Debt. It can also include selling Assets or even converting some Debt into Equity stake.

(See Chapter 46 Mergers and Demergers of the Vernimmen)

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