| 释义 |
scheme of arrangement
1. An agreement between a debtor and his creditors to arrange the debtor’s affairs to satisfy the creditors. The debtor usually agrees to such an arrangement in order to avoid bankruptcy. If the arrangement is agreed when no bankruptcy order has been made, it is governed primarily by the ordinary law of contract. However, if it is for the benefit of the debtor’s creditors generally, or if the debtor is insolvent and it is for the benefit of at least three of his creditors, it is a deed of arrangement and subject to statutory control unless it is a voluntary arrangement. An arrangement agreed after a bankruptcy order has been made is governed by the statutory provisions relating to bankruptcy (see voluntary arrangement). 2. An agreement between a company and its creditors or members when the company is in financial difficulties or to effect a takeover. It must be approved by a majority in number (holding 75% in value) of those creditors or members at separate meetings and sanctioned by the court. All creditors or members involved in the scheme are bound by it, although the court can make special provision for those who dissent (Companies Act 2006 pt 26). Agreements with company creditors can often be more conveniently concluded by voluntary arrangement under the Insolvency Act 1986. The Corporate Insolvency and Governance Act 2020 made some permanent changes to insolvency law and some temporary changes in response to the COVID-19 pandemic. Amongst the permanent measures are a new type of court-sanctioned restructuring plan; this must be “fair and equitable” and approved by a majority of creditors but can be imposed on dissenters (a procedure known as a cross-class cram down). Another permanent change is a new free-standing moratorium to provide companies with a “breathing space” in which to pursue a restructuring or rescue plan; during this period of 20 business days no action may be taken without court permission. The directors of the company remain in control but an insolvency practitioner is appointed as a “monitor”. This is known as a debtor-in-possession procedure. The 2020 Act was the biggest change to UK corporate insolvency law for twenty years. |