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.



Featured Tip

The Most Favored Customer Clause

One useful but fairly uncommon type of contract stipulation is a most-favored-customer clause. Under such an arrangement, no one gets a better price than this customer, or if someone else does then th ... Read more

Additional Tip(s)



http://www.businessdictionary.com/definition/arrangement.html





Enter your email address to get our free Term of the Day newsletter!

Nearby Terms

Popular 'Banking, Commerce, Credit, & Finance' Terms


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z