For the purposes of unlikeliness to pay as referred to in point (d) of Article 178(3) of Regulation (EU) No 575/2013, a distressed restructuring should be considered to have occurred when concessions have been extended towards a debtor facing or about to face difficulties in meeting its financial commitments as specified in paragraphs 163-167 and 172-174 of Annex V Commission Implementing Regulation (EU) No 680/2014 of 16 April 20143 as amended by Commission Implementing Regulation (EU) 2015/2274.

What does: "concessions have been extended" mean in this context? I tried to google it but could not find anything that seem to fit and make sence

  • 3
    Hello, Al. In law, what are known as 'stipulative definitions' are slammed on many terms that have looser (or even different) definitions in everyday English. Even if you had found a dictionary definition that seemed to fit well, there would have been no guarantee that it was the one the lawyers were using. I'm afraid questions about legal usages are off-topic on ELU (we don't want to end up getting sued).
    – Edwin Ashworth
    Feb 28 at 16:40
  • sorry I was a bit fast there, I wanted to know what the sentence mean "concessions have been extended" - what has been extended? @Edwin Ashworth. when I read it it seems like it means that some kind of action has been taken towards the debtor - but thats probably not right...
    – Al piotrovski
    Feb 28 at 16:51
  • I am not asking you to give a legal interpretation of the sentence
    – Al piotrovski
    Feb 28 at 16:55
  • 2
    With the passive voice, you have to infer the agent (the doer), here, some creditor. A creditor extended concessions towards a debtor.
    – Yosef Baskin
    Feb 28 at 16:55
  • 2
    to extend means to give someone something. to extend a hand, to extend a courtesy, to extend a concession means to grant them a concession, which is something you concede to, agree to. In other words, you agree to give or grant them something they asked for (probably). So, the creditor might grant this or that to a debtor so it can restructure its debt. A concession might be a time extension on when the debt will definitively be due. :)
    – Lambie
    Feb 28 at 16:57

What does: "concessions have been extended" mean in this context?

Unless the law at issue gives an explicit definition of the term, in the context of contracts, bankruptcy, etc. "concession" means something a party grants to another.

Since the excerpt is about "meeting financial commitments", the term "concession" can mean one or more of the following (the list is not exhaustive):

  • a creditor's agreement to be paid a lower amount (and therewith discharge the remainder of the debt);
  • an extension of the payment deadline;
  • a waiver of some right(s) in the event of default or for the purpose of averting a default; or
  • an agreement to be paid in kind rather than with money.

The event that a debtor obtains any such concessions qualifies as "distressed restructuring", thereby triggering the implications pursuant to the statute/regulation/directive you are reading.

  • ""concession" means something a party grants to another." a concession, in this context, is a surrender or modification of a right of the crediutor granting it in favor of the debtor. Your examples all fit that, but the general definition provided is a bit overbroad.
    – ohwilleke
    Mar 3 at 19:47
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    @ohwilleke "the general definition provided is a bit overbroad". I agree, but that is why in the 2nd paragraph I narrowed it down to the context of debt restructuring. The first paragraph is intended as a rough guideline on when the ordinary meaning of words is applicable. Mar 3 at 20:18

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