Workout

{
  "id": "MLC-T-LAW-005262",
  "term": "Workout",
  "field": "Law",
  "definition": "An out-of-court process where a financially troubled debtor negotiates with its creditors to restructure its debt obligations. The goal is to create a revised payment plan that allows the debtor to continue operating and avoid formal bankruptcy proceedings. A workout agreement is a private contract that might involve extending payment deadlines, reducing interest rates, or forgiving a portion of the principal debt.",
  "url": "https://mlchart.com/terminology/law/workout/"
}