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A deed of company arrangement is a binding agreement between a company and its creditors dealing with the company’s affairs. A deed of company arrangement will be entered into when a company is insolvent, and is focused on providing a higher return for creditors and possibly continuing the business, as opposed to immediate liquidation and winding up.

A deed of company arrangement can include any legal arrangement, but it will commonly involve a periodic payment scheme, sale of assets or a moratorium on debt repayments for a set period of time. Sometimes a deed of company arrangement will merely be a vehicle for maximising the return to creditors by way of a structured sale, and then winding up and deregistration of a company.

A deed of company arrangement must be accepted by the required majority of the company's creditors at a meeting held during a voluntary administration of the company.

Our Insolvency Solicitors have experience in assisting administrators, companies and creditors with voluntary administrations and deeds of company arrangement. For professional and quality advice, contact our firm on (02) 233 4048 and speak with an Insolvency Solicitor today. 

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