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In this session, we focus on troubled debt restructuring, specifically exploring the modification of loan terms as a solution. We previously covered debt settlement options, and now we'll delve into how loan term modifications work. There are two scenarios regarding cash flow: when the undiscounted future cash flow is less than the carrying value of the debt, and when it exceeds the carrying value. Troubled debt restructuring occurs when creditors (lenders) offer concessions to debtors (borrowers) under non-normal circumstances. This process was particularly relevant for construction companies during the real estate crash of 2007-2008.