New ‘extravagant’ agreements in respect of pre-insolvency homologated arrangements under the 4th additional provision of the Insolvency Act: the ‘halo of the arrangement’

2. We will not question now whether a homologated arrangement may contain financial undertakings that differ from the measures contained in paras. 3 and 4 of the 4th additional provision (forgiveness of debt, payment deferral, payment in kind, capitalisation, etc.). The courts are sanctioning, without any questioning, arrangements of this kind and are ‘cramming down’ on dissenting creditors terms thereof that go beyond the remedies listed in said paras. 3 and 4 – with the exception of arrangements that involve forfeiting security and security interests, where there is greater judicial resistance. Although the limits to this practice are not certain, such are not the subject of this paper…