A deed of arrangement is a legally binding agreement between a
debtor and those creditors who choose to participate which provides
for satisfaction of the debts.
Creditors who do not choose to participate are free to pursue their debts in the normal way and the deed does not provide any protection against bankruptcy action.
A debtor who
may propose a deed of arrangement under the Deeds of Arrangement
Generally the deed of arrangement provisions are seldom used. The debtor who does wish to pursue this course will normally
If the debtor is a trader there may be a possibility that the business can be continued in both the debtor’s and creditors` interests. The debtor may therefore
However if the debtor’s business is viable a voluntary arrangement is more likely.