Scheme of Arrangement
/ˈskiːm əv əˈreɪndʒmənt/
Definitions
- (n.) A court-approved arrangement between a company and its creditors or members to reorganize its structure or debts without liquidation.
The company proposed a scheme of arrangement to restructure its financial obligations and avoid bankruptcy.
Forms
- scheme of arrangement
- schemes of arrangement
Related terms
See also
Commentary
A scheme of arrangement requires court sanction and is often used as an alternative to insolvency proceedings; it must be approved by a specified majority of creditors or members.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.