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.
- 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.
- Also called a scheme of reconstruction.