A procedure whereby a plan of reorganisation, or composition in satisfaction of its debts, is put forward to creditors and shareholders. There is limited involvement by the Court and the scheme is under the control of a licensed insolvency practitioner who acts as supervisor.
A plan of re-organising company debts that is put forward to its creditors and shareholders.
A formal agreement between the company and it's creditors and shareholders, which will enable the company to settle the creditors claims, either in full or in part, over a period specified in the agreement. This usually enables the company to continue trading. (See our notes on this procedure)
A procedure which enables an insolvent company to propose a repayment plan to its creditors. Under this plan, creditors agree to accept a certain sum of money in settlement of debts due to them by the company. An IP or other professional advisor supervises this procedure.
Procedure to try and obtain agreement from creditors for a scheme to pay a proportion of the debts of a company.
A voluntary agreement for a company is a procedure whereby a plan of reorganisation or composition in satisfaction of debts, is put forward to creditors and shareholders. There is limited involvement by the court and the scheme is under the control of a supervisor.
This is the equivalent to an Individual Voluntary Arrangement, but for businesses. Allowing any financial problems to be overcome with the creditors consent so that the business can continue to trade.
Under Part I of the Insolvency Act 1986, a company can obtain breathing space against its creditors through a moratorium during which it can seek to recover its solvency or at least reach a compromise arrangement whereby the creditors agree with the company on a formula for settling their debts.
