Creditors' Scheme

A Creditors’ Scheme is a legally approved plan that allows a company in financial trouble to manage its debts. It involves negotiating terms with creditors—like reducing the total owed or extending payment deadlines—and obtaining approval from the creditors and the court. Once approved, the scheme provides the company with a structured way to repay debts over time, helping it avoid bankruptcy and continue operations. Essentially, it’s a structured agreement that balances the company's ability to pay and creditors’ interests, aiming to provide a fair resolution for all parties involved.