Restructuring Plans · glossary
A deal between a company and its creditors that the court approves after they vote in classes. Each class needs a majority in number and three quarters of the money voted. A scheme cannot bind a class that votes no, so the fund could have blocked one. Explanatory Statement, paragraph 1.5 · Chapter 2 · see Restructuring plan
Explained in Chapter 2, Restructuring Plan vs Scheme of Arrangement vs WHOA, of Restructuring Plans.
Besides the noteholder vote, there are three court procedures to choose from, two of them English. A scheme of arrangement is a deal between a company and its creditors that the court approves. Creditors vote in classes (groups that vote together). Each class must agree twice: by a majority in number of those voting, counted by heads, and by three quarters of the money voted.Read Chapter 2, Restructuring Plan vs Scheme of Arrangement vs WHOA →
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