Default is the failure to do something like pay a debt Compromise is aragement between a company and its creditors about it debts. The provision relating to this is s227. It is binding. And the company and it liquidator will come into an agreement to Lower the claim, so that the company going into liquidation will have to pay a lower amount to the creditor they owe money to. The agreement would be binding meaning that is the amount they have to go with. It is canceling all or part of a debt. There are varying terms of the debt. Use to avoid receivership or liquidation. So basically When a company go into corporate default this is the probably the first thing go to avoid liquidation. It is first step in to dealing with corporate default. So basically comprise is when the company go into liquidation make an agreement between you creditor to lower the amount