Troubled debt restructuring

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A troubled debt restructuring (TDR) is defined as debt restructuring in which the creditor, for economic or legal reasons related to the debtor's financial difficulties, grants concessions to the debtor that will not be considered. Thus, in order for debt restructuring to be considered a TDR, two conditions must exist:

1. The debtor must have financial difficulties.
2. The creditor must provide concessions as a consequence of the debtor's financial difficulties.

Source of the article : Wikipedia