Counter-indemnity and Scheme of arrangement: Difference between pages

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imported>Doug Williamson
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A counter-indemnity is an obligation to make a reimbursement in relation to a primary indemnity, guarantee, bond or any similar arrangment.
''Insolvency law.'' 
 
An agreeement between a financially distressed company and its creditors or members to effect a merger or a restructuring, which requires the sanction of the court.
 
For example, we may be a corporate supplier in a commercial contract.
 
As part of the contractual arrangements, our bank may issue a performance bond to our customer.
 
This gives rise to a contingent liability for our bank.
 
The bank will require a counter-indemnity from ourselves, in favour of the bank.
 
If the performance bond is called, we must indemnify the bank under the counter-indemnity.  


== See also ==
* [[Insolvency]]
* [[Merger]]


== See also ==
* [[Bond]]
* [[Contingent liabilities]]
* [[Guarantee]]
* [[Indemnity]]
* [[Indemnity clause]]
* [[Multilateral netting]]
* [[Performance bond]]

Revision as of 14:20, 23 October 2012

Insolvency law. An agreeement between a financially distressed company and its creditors or members to effect a merger or a restructuring, which requires the sanction of the court.

See also


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