debt recharacterization
A doctrine allowing bankruptcy courts to treat a "loan" as an equity investment if the facts indicate that the loan was in reality a capital contribution. This cause of action is usually brought against shareholders or other insiders who, before bankruptcy, extended loans to distressed companies on very forgiving terms.
For further information, see Practice Note, Lenders Beware: The Risk of Debt Recharacterization in Bankruptcy (

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Mortgage-backed security — Securities Securities Bond Stock Investment fund Derivative Structured finance Agency security …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.