Schemes of Arrangement
Schemes of arrangement are a well-established method to help with the restructuring of a company. Mostly these schemes are applied to insurance/reinsurance companies as a way of exiting the business early and releasing surplus capital.
Working closely with senior management, Cork Gully would draw up a detailed Scheme document, setting out a timetable and would liaise with all parties to make sure that the Scheme is implemented and the business is properly concluded. In effect it enables insurance companies to avoid some common problems such as reducing run-off costs, evaluating and dealing with creditors’ claims and making an earlier return of equity to members and shareholders.
There are three key elements to a successful Scheme: