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The group is asking lenders to extend maturities until at least 30 May.
Less leverage could help Freescale refinance at lower rates and extend maturities.
Minneapolis-based ResCap is offering investors as little as 80 cents on the dollar to extend maturities and reduce debt.
He says the market is dominated by companies issuing bonds to lock in interest rates while they extend maturities, not companies using credit to aggressively relever.
You can argue that is what happened in New York City a quarter of a century ago, when some bondholders were forced to extend maturities.
Loral Space and Communications, the satellite-communications company, said yesterday that lenders had agreed to extend maturities for $1.09 billion in bank loans being used to increase the company's satellite fleet.
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"We agreed to extend maturity on loans extended to Hyundai Engineering and Construction, in order to ease its short-term cash shortage," said Lee Youn Soo, vice president of the main creditor, Korea Exchange Bank.
Still, creditors will extend maturity on existing debts at the least until the end of the year, provided they come up with ways to raise more cash and they do not experience further cash problems.
Merely extending maturities may amount to kicking the problem down the road.
The mild tonic of debt restructuring involves extending maturities and lowering interest rates on the country's debt.
Europe has already eased debt burdens on bailed-out economies by lowering interest rates on its loans and extending maturities.
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