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Deed Of Company Arrangement

Oldhams has considerable experience conducting financial investigations, negotiating with creditors and developing strategic plans to prepare DOCAs.

A Deed of Company Arrangement (DOCA) is a binding agreement that is used in restructuring a company that is in financial distress. It is typically used as an alternative to liquidation.  It allows a company to restructure its debts and other obligations in a way that allows it to continue operating. The DOCA is overseen by the deed administrator such as Oldhams.

A DOCA is typically proposed by the directors (or any third party) of the company and must be approved by the company’s creditors or the court. We can also act independently as an advocate for the director or creditors and assist with developing a deed proposal. 

A DOCA proposal sets out the terms under which the company will restructure its debts and other obligations, and may include provisions such as a repayment plan, debt forgiveness, or asset sales.

Once a DOCA has been approved and implemented, the company is protected from legal action by its creditors and is able to focus on restructuring and improving its financial performance. If the company is successful in implementing the DOCA, it avoids liquidation and continues operating. However, if the company is unable to fulfill its obligations under the DOCA, it may be placed into liquidation.

If your business is facing financial difficulty the best thing you can do is act now. Oldhams have over 20 years experience guiding businesses that are struggling. We can help.

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