Insolvency FAQ # 4 – What is a Deed of Company Arrangement?
If there is a proposal put forth for the business to continue and creditors to be paid, the company and its directors execute a Deed of Company Arrangement. At the time of considering the proposal, the creditors consider a report from the insolvency practitioner as to their recommendations. Eventually, the decision as to whether a Deed of Company Arrangement is entered into is made by the creditors of the company.
