Dictionary

scheme of arrangement

a reorganisation of a company's capital structure or its debts which is binding on creditors once it has been approved by a particular majority and once it has been sanctioned by the court The Court ruled that a company proposing a solvent scheme of arrangement with its creditors must provide each creditor with a list of the names and contact details of the other creditors.

Phrase Bank

  • The company plans to enter into a scheme of arrangement.
  • The debtor needs the court's approval to make a scheme of arrangement with his creditors.
  • The scheme of arrangement was approved by the court.
  • The scheme of arrangement became effective on 1st January, 2010.

Additional Notes

  • Also called a scheme of reconstruction.