Conversion of loan to equity

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Dear all,

X, an unlstd public Co. owes Y, an unlstd public Co. certian amount of debt. It is now proposed to convert this debt to equity. My query is - That at what value should this conversion take place? Should it be at Face Value or Fair Value??

Please help!!

Thanks in acticipation.

Regards,

Ruchie

Replies (2)

facevalue..

I think it should be at fair value, please correct if i am wrong.
 


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