A debt equity swap involves a company's creditor becoming a partner in the company by converting the claim or debt instrument he holds against the company into shares in the company.
A number of questions arise in this case:
- What is the nature and legal basis of this operation?
- Is such operation possible for private limited liability companies?
- What impact does the company's situation have on the feasibility of the operation?
- What practical aspects need to be considered?
- What could be the potential developments?
In today's context of increasing demand for legal flexibility, this mechanism holds great potential, particularly for private limited liability companies, as a tool for settling liabilities and improving the company's financial situation.
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