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1. adjustment or realignment of debt structure reflecting concessions granted by creditors, to give the debtor a more practical arrange-ment for meeting financial obligations. Restructuring is needed when the debtor has severe financial problems.The agreement to restructure may result from legal action or simply be an agreement to which parties consent.
2. realignment of debt structure based on a voluntary financial management decisionfor example, to replace shortterm debt with long-term debt.
