debt assumption
[/dɛt əˈsʌmpʃən/]
nounpl: debt assumptions
assunção de dívida
1. A legal and financial arrangement where one party agrees to take responsibility for paying another party's debt obligation
The bank's debt assumption of the company's liabilities helped restructure their finances.
A assunção de dívida do banco das responsabilidades da empresa ajudou a reestruturar suas finanças.
2. In mergers and acquisitions, the process by which a purchasing company takes on the debts of an acquired company
The debt assumption was a key component of the merger agreement between the two corporations.
A assunção de dívida foi um componente chave do acordo de fusão entre as duas corporações.
3. A financial transaction where liabilities are transferred from one entity to another
Under the debt assumption clause, all outstanding loans would be transferred to the new owner.
Sob a cláusula de assunção de dívida, todos os empréstimos pendentes seriam transferidos para o novo proprietário.
Debt assumption is a crucial concept in both American and Brazilian corporate law and finance. In the USA, it's particularly common in M&A transactions and bankruptcy proceedings. In Brazil, it's frequently used in corporate restructuring (reestruturação empresarial) and is governed by specific commercial and civil law provisions. The term is highly formal and used primarily in legal documents, financial contracts, and business negotiations in both countries.
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