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What is the purpose of a standstill agreement in debt restructuring?
  • a)
    To permanently freeze all financial transactions.
  • b)
    To prevent creditors from taking legal action for a specified period.
  • c)
    To force immediate repayment of all debts.
  • d)
    To waive the company's liabilities entirely.
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
What is the purpose of a standstill agreement in debt restructuring?a)...
A standstill agreement is designed to prevent creditors from taking legal action against the company for a specified period, allowing time for the debt restructuring process to take place.
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