What is a Debt Conversion Agreement?

Debt conversion agreement: A legal agreement between the investor and the debtor government describing the terms, procedures and obligations of both parties to a debt conversion. In conversion involving bilateral debt, the agreement is between the creditor government and the debtor government.

Does Australia have a national debt?

Australia’s national debt is counted as the debts of the government of the Commonwealth of Australia. The debts of Australia’s states are not included. The account of debts is limited to loans and financial instruments undertaken by the government. Not all obligations are included in the national debt.

What is a convertible debt round & how does it work?

Instead of setting a valuation, a conversion discount or a valuation cap will be used. Unlike other financing rounds, convertible debt rounds can last for an extended period of time, giving investors more opportunity to put their money into the company. Convertible debt has a variety of features that you should understand.

Can a convertible debt be converted to equity?

While convertible debt always has an option to convert to equity, the specific timing and conditions, as well as the value of the equity awarded in exchange for the debt, does vary from one deal to the next. All of this would be outlined in the term sheet.