Solvent Scheme of Arrangement

A solvent Scheme of Arrangement is a legal process through which a financially healthy company rearranges its assets, debts, or ownership structure with approval from its shareholders and creditors. It allows the company to implement transformative changes—such as mergers, demergers, or capital reorganizations—without going bankrupt. The scheme is overseen by courts or regulatory authorities to ensure fairness. Essentially, it’s a formal plan that enables a solvent company to organize its affairs more efficiently or achieve strategic goals, with all stakeholders' agreement, while remaining financially stable throughout the process.