HIH Insurance

What is a Scheme of Arrangement ?

A Scheme of Arrangement is a compromise or arrangement between a company and its creditors (or any class or them), governed by Section 411 of the Corporations Act 2001 in Australia or section 425 of the Companies Act in England. Such a Scheme essentially sets out the rules by which the administration of the company will be governed.

The Schemes of Arrangement are administered separately, but parallel to, the Liquidations of the Scheme Companies. Instead of dealing with the Liquidators, the affairs of creditors are handled by the Scheme Administrators. The Scheme Administrators of the Australian Schemes are Mr J Preston and Ms K Sozou of McGrathNicol and the Scheme Administrators of the English Schemes are Mr B J Gale and Mr D M Ashbourne of KPMG LLP (UK).

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