This is a process used by companies to ease the burden from their existing debts, such as by negotiating lower interest rates and asking longer tenor. Debt restructuring provides an avenue or solution when a debtor is in financial turmoil, and it can work to the benefit of both borrowers and lenders. It is also suitable when a company is dealing with a small number of creditors.

PKPU is debt settlement to avoid insolvency that provides a certain period of time given by law through a commercial court decision. Within the period, creditors and debtors are given chances to discuss settlement scheme by providing a composition plan. Therefore, PKPU is a kind of legal moratorium.