Debt-to-equity swap refers to the creditor reaching an agreement with the company as the debtor, taking the creditor's rights as the company's capital increase, and the creditor's identity is changed into the company's shareholder, thus eliminating the original creditor-debtor relationship.

In the operation of non-governmental loan-to-equity swap, the creditor's rights should be replaced by equity according to the requirements of the Company Law and the specific articles of association.