a statutory mechanism for a contractual arrangement between a company and its creditors that enables a restructuring of debt or a binding compromise to be put in place which is agreed by way of resolutions passed at meetings of classes of creditors
the scheme of arrangement under part 5.1 of the Corporations Act between CSR and its members as described in this booklet, subject to any modification made or required by the Court on the Second Court Date
A term normally used to describe a compromise or arrangement between a company and its creditors or members or any class of them under section 425 of the Companies Act 1985, which may involve a scheme for the reconstruction of the company. If a majority in number representing three-fourths in value of the creditors or members or any class of them agree to compromise or arrangement it is binding if sanctioned by the court. Section 425 may be invoked where there is an administration order in force in relation to the company where there is a liquidator or provisional liquidator in office, or where the company is not subject to any insolvency proceedings.The term is also used in section 1 of the Insolvency Act 1986 in relation to company voluntary arrangements.