What does a Statement of Proposals seek from creditors?

A Statement of Proposals is a formal document that outlines a proposed payment plan to creditors, typically in the context of a company undergoing a voluntary arrangement or similar insolvency proceedings. The main objective of this proposal is to seek creditor approval for the outlined repayment strategy. By presenting a structured plan, the company communicates its intention to repay debts over a specified time frame while allowing creditors to understand how they might recover their funds. This makes acceptance of the payment plan the primary goal of the Statement of Proposals.

The other choices relate to different aspects of creditor interactions. The formation of a creditor's committee involves appointing a group that represents all creditors, which is not the specific aim of a Statement of Proposals. The appointment of an administrator pertains to a different phase of insolvency management and is not initiated by a Statement of Proposals. Lastly, a statement of affairs is a document that details a company's financial status and assets and liabilities but is a separate requirement from the proposals and does not represent what is sought from creditors in the context of the proposals.