Is it a purchase price reduction or not?

Assume that an individual who owns a shopping center on which there is a $1 million debt enters into negotiations with the lender to modify the debt. As a result of the negotiation, the lender reduces the debt by $200,000. What is the effect of the debt reduction? Is it income? Is it a reduction to the purchase price? The key to answering these questions is to determine to whom the debt is owed. Is the lender the party from whom the individual purchased the property or someone else?