Debt Restructuring Agreement
When businesses face cash-flow challenges or struggle to repay loans, a Debt Restructuring Agreement becomes a lifeline. It helps renegotiate repayment terms, reduce financial stress, extend timelines, or modify interest rates—ensuring the borrower stays afloat while protecting the lender’s interests. At Aarthika Globcorp, we assist companies, MSMEs, and individuals in drafting clear, balanced, and legally compliant Debt Restructuring Agreements that rebuild financial stability and prevent defaults. Our expert structuring ensures transparency, mutual trust, and long-term financial sustainability, making debt restructuring a strategic business decision rather than a crisis reaction.
Documents Required
- Existing loan agreement
- Outstanding loan statements
- Financial statements (P&L, balance sheet, cash flow)
- Repayment proposal & revised terms
- Security / collateral documents
- Identity & business proof of borrower
FAQs
To avoid defaults, ease cash flow stress, extend repayment timelines, or negotiate better financial terms.
It may reduce interest, penalties, or adjust repayment, but the principal generally remains the same unless agreed otherwise.
Revised EMIs, extended tenure, temporary moratorium, reduced interest, or altered security terms.
Yes. Both secured and unsecured loans can be restructured with appropriate documentation.
For banks and NBFC loans, restructuring must follow RBI’s prudential norms.