As part of the 2021-22 Budget, the Government committed to consult on options to improve schemes of arrangement processes to better support businesses.
A creditors’ scheme of arrangement is a corporate restructuring process regulated under Part 5.1 of the Corporations Act 2001.
The Government is seeking stakeholder views on the appropriateness and impact of applying an automatic moratorium on creditor claims during formation of a creditors’ scheme. Currently, no automatic moratorium is applied.
Input is also sought on whether other improvements to schemes of arrangement could be made.