Cyprus reduces the threshold for approving Schemes of
Arrangement to simple majority
An attractive alternative for court sanctioned debt
restructurings
Cyprus offers an attractive alternative for Court sanctioned
debt restructurings, by reducing the statutory majority necessary
for approving a scheme of arrangement.
Recent legislative amendments, have reduced the required
statutory threshold for approving a scheme of arrangement, to a
simple majority in value of the creditors present and voting, and
have eliminated the former requirement of securing a special
majority of 75% both in value and in number of the creditors
present and voting.
Following the approval of a scheme of arrangement by the
required statutory majority, the arrangement may be brought before
a judge for sanctioning, and upon its sanctioning it becomes
binding on all parties involved.
