Related Terms
Banking: A private or court-mediated agreement between a debtor and unsecured creditors, under which the creditors agree to settle for a certain fraction of monies owed by the debtor.

When it is a voluntary agreement, it is properly called a scheme of arrangement and is governed by the ordinary law of contract. Otherwise (if the debtor is insolvent) it is a deed of arrangement which is governed by the relevant statute. The primary objective of an arrangement is avoidance of bankruptcy. See also letter of leniency.

Use 'arrangement' in a Sentence

If you agree to an arrangement you must keep up your side of the bargain to keep your business reputation in tact.
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We had an arrangement to meet at a certain place at a certain time and the other person did not show up and it made me mad.
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The arrangement between the lender and the borrower was clearly laid out in the form of several different contracts we had access to.
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