Voluntary arrangement to restructure ( restructuring) a firm's debt, under which payment is reduced. Bloomberg Financial Dictionary
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composition com‧po‧si‧tion [ˌkɒmpəˈzɪʆn ǁ ˌkɑːm-] noun [countable usually singular]
LAW an arrangement between a person or organization that owes money and the people or organizations the money is owed to concerning the way in which the debts should be repaid:
• The debtor may then make a composition with his creditors, but if this is not done he will be made bankrupt.
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composition UK US /ˌkɒmpəˈzɪʃən/ noun
► [U] the way in which the parts of something are arranged: the composition of sth »
The company said it plans to change the composition of its board of directors, creating a board composed predominantly of independent directors.
► [U] PRODUCTION a manufactured material made of more than one substance: »
Composition tiles have replaced asbestos tiles in public buildings.
► [C, usually singular] LAW an agreement in which someone who owes money pays less than is owed, in order to settle the debt more quickly: make a composition with sb »
If a person has at any time been made bankrupt or has made a composition with creditors, he is disqualified from being appointed as a trustee of the charity.
Financial and business terms. 2012.