Germany is waiting for details of a debt-equity swap that Russia proposed last month.
Short of liquidating the firm, a mixture of asset sales and a debt-equity swap may be the lesser of many evils.
The third plan, a debt-equity swap, arguably has the most market logic even if Mr Monti dislikes it because it would make last year's rescue package irreversible.
In 2009, Jessops managed to avoid administration by agreeing a debt for equity swap with its lender, HSBC, that saw it taken off the stock market.
Two years ago Georgia Gulf was near bankruptcy, saved only by a debt-for-equity swap that cut its debt in half.
In debt exchanges, companies typically ask creditors to swap current debt for equity, new debt with a lesser value that matures later, or a combination of the two.
Essentially Citigroup is contesting a decision made by Mr Bondi to exclude it from the list of Parmalat's creditors, a step that would, if upheld, keep the bank out of a future debt-for-equity swap prior to Parmalat's re-flotation on the stockmarket.
Domestic banks, and some corporate investors, may choose to swap debt for equity.
At the end of 1998, 72% of the creditor banks had agreed in principle to TPI's restructuring plan, which included an equity-for-debt swap.
The steps here are first swap the remarked bank debt for equity shares in mutual funds while simultaneously selling the remarked bank assets to the mutual funds.
According to a Harvard Business School study, WPP persuaded its banks to swap a quarter of its debt for 47% of WPP's equity, while providing new financing.
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