scheme of arrangement |
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Definition
Voluntary agreement between a solvent debtor and consenting creditors under which the debtor's assets and/or income are applied proportionately in satisfaction of the debts. This arrangement is normally governed by the ordinary law of contract, and is meant to serve as a more advantageous alternative to the debtor's bankruptcy. See also deed of arrangement.
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scheme of arrangement is in the Banking, Commerce & Finance and Corporate, Commercial, & General Law subjects.
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