DIFC
Voluntary Arrangements
A structured company rehabilitation process.
What does this entail?
A Voluntary Arrangement is a debtor-led rehabilitation process available to companies facing financial difficulty. To initiate the process, the company appoints a Nominee and the directors prepare a proposal setting out how the company intends to compromise or restructure its debts. The Nominee reviews the proposal and presents it to creditors for consideration.
For the arrangement to be approved, at least 75% in value of the creditors present and voting must vote in favour. Once approved, the arrangement becomes binding on all creditors entitled to vote.
Following approval, a DIFC-approved insolvency practitioner is appointed as Supervisor (this may be the Nominee) to oversee implementation of the arrangement and report to creditors on its progress.
A company may apply to the Court for a moratorium to provide interim protection from creditor action. However, a moratorium is not automatic and must be justified to the Court.
Get in Touch
Chris Iacovides
Chief Executive Officer
Andri Antoniou
Director - Licensed Insolvency Practitioner
Marios Kofteros
Director - Licensed Insolvency Practitioner
When is it appropriate?
A Voluntary Arrangement may be suitable where:
- The underlying business is viable
- The company is experiencing short- to medium-term cash flow pressure
- Creditors are likely to support a structured compromise
- Directors wish to avoid formal liquidation or administration
The process allows the company to continue trading while restructuring its liabilities in an orderly and controlled manner.
How we can help
Our team can provide guidance throughout the process, advise on strategy and assist with the preparation of a commercially viable proposal. We are able to accept appointments as Nominee or Supervisor, overseeing the implementation of the terms of the voluntary arrangement.
Next steps
If your company is facing financial pressure, early advice is critical. Contact our team to discuss whether a Voluntary Arrangement is the right solution for your business.
Key Benefits
Debtor led voluntary process
- Directors remain in control of the business
- Approved arrangements are binding on all creditors eligible to vote
- Option to seek moratorium where appropriate
Experienced, Trusted Advisers
Our services are delivered by experienced, qualified professionals who follow a structured and transparent process, from initial assessment through to implementation. We combine technical expertise with a practical approach to ensure each engagement is managed professionally and focused on achieving appropriate outcomes for all stakeholders.