1.What is a Deed of Company Arrangement, and what is its effect on the company and creditors? Which is the correct response?

a.A Deed of Company Arrangement is the process whereby the creditors agree to allow the company to continue trading under some form or a contractual agreement designed to pay back amounts owing at a future point in time.

b.A Deed of Company Arrangement is the process imposed by ASIC whereby the creditors are required to list amounts they believe are owing to each of them, so that a repayment can be made at the point of company liquidation.

c.If a company is unable to convince the creditors to accept a Deed of Company Arrangement, the company will be put into liquidation and deregistered.

d.A Deed of Company Arrangement is the agreement by the creditors to actually sell off the company assets in order to satisfy various creditors.