Troubled Debt Restructuring

A troubled debt restructuring (TDR) is defined as a debt restructuring in which a creditor, for economic or legal reasons related to a debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider. As such, in order for a debt restructuring to be a considered a TDR, two conditions must be present:

1. The debtor must be experiencing financial difficulties.
2. The creditor must grant a concession in consequence of the debtor's financial difficulties.