Solutions

Schemes of Arrangement

Best possible chance of success

If your company is facing financial problems, whether it concerns large debts, trading difficulties or pressure from creditors, we can help you.

What is a Scheme of Arrangement?

A Scheme of Arrangement is a process used by a company in financial difficulty to reach a binding agreement with its creditors to pay back all, or part, of its debts over an agreed timeline.

The new Companies Act has made Schemes of Arrangement significantly cheaper and more flexible, with the result that they are now a realistic option for struggling companies to consider.

Who Should Consider Them?

  • Companies with large debts
  • Companies needing to restructure
  • Companies experiencing trading difficulties
  • Companies under pressure from their creditors
  • Companies wanting to avoid liquidation

How a Scheme of Arrangement Can Work

  • The company draws up scheme proposals for its creditors
  • The company sends out the proposals to its creditors, together with notice of a creditors meeting
  • Meeting held where the company explains the proposals
  • Creditors vote in favour of scheme
  • High Court approves scheme
  • Debts written down as per the scheme’s proposals

The Advantages

  • Lower Costs – now less court involvement
  • Large write downs of debts can be achieved
  • Directors stay in control of the company
  • Company continues trading
  • Company avoids liquidation
  • Once completed, the Scheme of Arrangement is legally binding on all creditors

How We Can Help

Our turnaround experts can guide you through every step of the process to ensure that the Scheme of Arrangement has the best possible chance of success and that the process goes quickly, smoothly and cost effectively.

Contact us to arrange a consultation with our team of experts.
Call: 01 417 2625
Email: wabaxter@deloitte.ie