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Section 201 Scheme of Arrangement

  • 04-08-2011 12:57PM
    #1
    Mocrie14
    Closed Accounts Posts: 341 ✭✭


    Got notification of a S201 scheme of arrangement propsal from a customer yesterday. I have heard this morning that a receiver has now been appointed - what impact does this have on the propsed scheme of arrangement?

    Thanks in advance


Comments

  • #2
    Credit Controller
    Closed Accounts Posts: 4 ✭Credit Controller


    One of the larger debtors might have decided that they would get more from a receivership than the scheme and jumped in. As far as I know it puts the scheme on ice. I am dealing with one at the moment for a client. They are a contruction company and the probable payout from the scheme would be 1/16 of the debt.

    I do not think it is fair that they can do this and walk away with no other pain. I think that the debt being written off should be swapped for some equity in the company with an agreement to sell it back to the company when the debts are cleared in full. Not sure if it will work but I am going to give it a go.


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