Debt restructuring is a strategic financial process to optimize a company's existing debt obligations. It involves evaluating and adjusting the terms of loans, credit lines, and other debt to enhance the company's financial stability and flexibility. The primary goal is to alleviate financial strain, improve cash flow, and create a sustainable path towards meeting financial obligations.

This approach can be beneficial during challenging economic times or periods of business growth, allowing companies to better align their debt structure with their current and future financial capabilities.