This procedure is used by the company when the Directors wish to continue to trade but the company is insolvent and are willing to pay its debts in full or in part but over a period of time.
The shareholders and the directors will need to approve the proposal drafted by the Insolvency Practitioner based on the information provided before it is sent to the creditors for their approval. At the creditors meeting it is necessary to obtain the approval of 75% of the creditors present or represented at the meeting. This will then be binding on all creditors. Any unpaid debts after the completion of the arrangement will be written off.
For further information please contact us 01923 820966