Informal schemes of arrangements

Informal schemes of arrangements are organised between a company encountering financial difficulties and its creditors and are done outside the ambit of the court. They are particularly suitable for situations where there are a handful of large creditors.

Key to ensuring success is timely and effective communication. It is important at the outset that the financial difficulties are communicated with all major creditors and an outline of the proposals for a scheme of arrangement is given.

Under such schemes all the creditors of the debtor company must also be prepared to cooperate with each other and provide sufficient time to the debtor to devise a recovery plan.

Informal schemes of arrangements can enable a company in financial difficulty to remain in business and pay a higher dividend to unsecured creditors than what they would receive in liquidation.

We can provide the following services:

• Communicating with creditors, banks and the Revenue Commissioners
• Preparation of report for creditors meeting
• Preparation of recovery plan
• Creditors meeting
• Implementation of recovery plan