Compromise or arrangement in liquidation requires creditor approval, higher realisable value, and strict filing timelines. A compromise or arrangement under section 230 in liquidation must be completed within ninety days of the liquidation order, and the liquidator may file it only on committee recommendation and within thirty days of the liquidation commencement date. Ineligible persons cannot be party to the arrangement. Filing also requires creditor approval by requisite majority and a realisable amount higher than liquidation value. Time spent on the process, up to ninety days, is excluded from liquidation period, and costs are borne by the corporate debtor if sanctioned or by proposing parties if not sanctioned.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Compromise or arrangement in liquidation requires creditor approval, higher realisable value, and strict filing timelines.
A compromise or arrangement under section 230 in liquidation must be completed within ninety days of the liquidation order, and the liquidator may file it only on committee recommendation and within thirty days of the liquidation commencement date. Ineligible persons cannot be party to the arrangement. Filing also requires creditor approval by requisite majority and a realisable amount higher than liquidation value. Time spent on the process, up to ninety days, is excluded from liquidation period, and costs are borne by the corporate debtor if sanctioned or by proposing parties if not sanctioned.
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