In an ideal scenario, businesses can reorganize themselves through voluntary agreements and re-negotiations with creditors. When this is not possible, schemes of arrangements can be used as an independent process to maintain business and continue trading.
Schemes of arrangement allow for financially challenged businesses to use legally binding structures to reduce their debt burden to long-term sustainable levels. Schemes of arrangement are undertaken through negotiated agreements with creditors and are a proven cost-effective means of reorganizing businesses.
How Duff & Phelps Can Help
Duff & Phelps has a strong, 40-year history of advising businesses, investors, institutions and state bodies in Ireland.
At Duff & Phelps, we focus on practical advice and strive to obtain rapid consensual deal agreement to enable businesses to progress and thrive post reorganization.
With our broad client base and deep expertise, we can successfully navigate and negotiate the competing priorities that must be aligned for a scheme of arrangement to be successful.
The core focus of any scheme of arrangement must be business survival and all parties to the negotiation must be brought together in a collaborative manner to achieve this goal. We find by focusing on collaboration throughout the process, the most desirable outcomes are achieved.
Advantages of Schemes of Arrangement
- Allows a challenged business to continue to trade
- Can be used to deal with all creditors or specific groups or classes of creditors
- Provides a cost-effective means of reorganizing a company
- Upon completion it provides certainty to businesses as to their debt position