— Kishore V, SME and ACW at Edumarz
Debentures are normally repaid in cash, however, debenture holders may be given the option of exchanging their debentures for shares or new debentures issued by the firm.
Renewal of a debenture with shares or fresh debentures is referred to as redemption by conversion, and debentures with such a right are referred to as convertible debentures.