Translation of "conversion de dettes en actifs " (French → English) :

New financing, including new loans, selling of certain assets by the debtor and debt-equity swaps, agreed upon in the restructuring plan and confirmed by a court should not be declared void, voidable or unenforceable as an act detrimental to the general body of creditors.

Before granting any kind of restructuring aid, be it a recapitalisation or impaired asset measure, to a bank all capital generating measures including the conversion of junior debt should be exhausted, provided that fundamental rights are respected and financial stability is not put at risk.

National authorities should not have the power to object to resolution tools applied at group level which falls within the responsibility of the group resolution authority, such as application of bridge bank tool at parent level, sell of assets of the parent credit institution, debt conversion at parent level.

For this purpose, the Board should be empowered in exceptional cases and where a national resolution authority has not or not sufficiently applied the decision of the Board to transfer to another person specified rights, assets or liabilities of an institution under resolution or to require the conversion of debt instruments which contain a contractual term for conversion in certain circumstances.

For that purpose, where a national resolution authority has not applied or has not complied with a decision by the Board pursuant to this Regulation or has applied it in a way which poses a threat to any of the resolution objectives or to the efficient implementation of the resolution scheme, the Board should be empowered to transfer to another person specified rights, assets or liabilities of an institution under resolution, to require the conversion of debt instruments which contain a contractual term for conversion in certain circumstances or to adopt any necessary ...[+++]action which significantly addresses the threat to the relevant resolution objective.

Creditor haircuts and debt to equity conversion Institution-specific options include debt to equity conversion (either administrative or contractual[7]) or imposing 'haircuts' on holders of subordinated debt and unsecured creditors (excluding deposits) in order to provide significant funding to a distressed firm and maintain it as a going concern.