This is a company voluntary arrangement (CVA), a procedure under the English insolvency legislation (though there is no requirement of insolvency) having similar effect to a scheme. It is important to note that the PWIF scheme will not make payments in respect of a voluntary liquidation. Prior to the IRDA, the procedures for a Scheme of Arrangement … Schemes of Arrangement: Restructuring in the Cayman Islands November 2020 Ben Hobden Alex Davies We appreciate that these are challenging times and that the need for cross-border advice on insolvency and restructuring matters may be required at short notice. A scheme of arrangement is a statutory, binding compromise reached between a company and its shareholders or creditors. – Writ Petition (Civil) No. At first blush the two processes are very similar. A Scheme of Arrangement helps a company in the restructure of its debt, and aids recovery from financial distress. Insolvency is not required, and a scheme of arrangement can be used in other scenarios, for example, for the reduction of share capital. Both processes require members and creditors to be grouped into "classes" based on their rights. However, see also the discussion under “Scheme of Arrangement” above regarding the operation of Hong Kong’s Protection of Wages on Insolvency Fund (“PWIF“) in a liquidation. Over recent years, the English law-governed scheme of arrangement has become an increasingly popular tool to implement debt restructuring solutions. vs. Union of India & Ors. restructuring plan, or the existing "tried and tested" scheme of arrangement. Following the introduction of the deed of company arrangement in Australian restructuring and insolvency law, schemes of arrangement became less prominent. Scheme of Arrangement. It is not an insolvency process and is utilised under the Companies Act 2006 rather than insolvency legislation, but it must still be sanctioned by court process. Schemes of arrangement are flexible: the legislation does not prescribe their terms. Ltd. & Anr. A scheme of arrangement must be approved by the court. Schemes of arrangement are frequently used by companies to give effect to a debt restructuring. Like the scheme, the restructuring plan sits in the Companies Act 2006 rather than the Insolvency Act 1986. Creditor approval and court sanction are necessary, however. Importantly, a scheme is neither an insolvency nor a bankruptcy process, and are relatively low profile in terms of publicity. Restructuring and insolvency; Schemes of arrangement; Schemes of arrangement Innovating with the latest legal tools. Schemes of Arrangement have been a part of Singapore’s restructuring and insolvency landscape since 1967. a formal insolvency procedure. 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