arrangement
Definition
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 called 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 lenienency.
arrangement is in the Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.
arrangement appears in the definitions of the following terms:
tie in sale,
joint venture (JV),
contingent fee,
flexible spending account plan,
franchising,
pass through security,
bought deal,
common-size financial statement,
anonymous FTP,
stockless purchase
and
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