Business Turnaround & Restructuring

Deeds of Company Arrangement

Maximise the chances of company survival

A Deed of Company Arrangement (DOCA) aims to maximise the chances for a company to continue to exist, or to continue one aspect of its business. Or a DOCA can be leveraged to provide a better return for creditors than an immediate company winding up. A DOCA becomes available through an initial voluntary administration appointment.

Company directors are empowered to propose a DOCA to their creditors, however any third party may propose a DOCA. It’s with the Worrells team’s skill and endorsement that creditors can be confident of business viability and increased returns when compared to an evaluated liquidation scenario and its expected outcomes.

Background

What is a Deed of Company Arrangement?

A Deed of Company Arrangement (DOCA) is a formal agreement between a company and its creditors and any other relevant third parties to satisfy company debts. A DOCA sets out terms and conditions, warranties and indemnities, the extent and nature of obligations, and the relationships between those who are a party to it.

A DOCA binds all creditors, both unsecured and secured, to the extent of any shortfalls on their securities and releases the company from its debts, at least to the extent provided for within the DOCA’s terms and conditions.

Service highlights

Right problems at the right time

Solving the right problems at the right time can be the difference between a business surviving or failing. Our people are trained to identify the right action plan for each unique situation, helping businesses in all industries and business models to pivot out of difficult times where possible, and create viable pathways for the business’s future.

Optimise a turnaround

A DOCA is designed for optimal business turnaround results.

Hit pause

Directors get a mortarium on creditor action during the initial voluntary administration phase.

Gain certainty

Directors gain certainty for business trading conditions with creditors under the DOCA, allowing business to rehabilitate.

Keep business relationships

Trade creditors get an increased return and retain their customer/client relationship.

Positive impact on stakeholders

Employees keep their job; creditors keep a customer; landlords keep a tenant; shareholders retain value

Flexibility in structure

Can structure the Deed of Company Arrangement to be a lump sum, instalments, % from profits.

Binding on all creditors

A Deed of Company Arrangement binds all creditors, both unsecured and secured, to the extent of any shortfalls on their securities and releases the company from its debts, at least to the extent provided for within the T&Cs.

Save the business

Continue to drive economic suitability and growth. Project jobs, support businesses and landlords. Keep contributing to industry and community.

How we help

Before being appointed, we always provide a clear picture of what options a business or person may have.

We operate as specialists in a unique sector, dealing with bad debts and distressed businesses and personal finances. We have the tools and framework to lead all parties through choppy seas. Tough situations often mean honest conversations and we will never shy away from the straight talk that insolvency demands.

We're here to help

We speak with people and their advisors every day. We do this as complimentary and without expectation.

Jason Bettles

Principal, Gold Coast, Northern NSW

Jason Bettles

Principal, Gold Coast, Northern NSW

Aaron Lucan

Principal, Western Sydney, Central West

Aaron Lucan

Principal, Western Sydney, Central West

Stephen Hundy

Principal, Canberra, Wollongong

Stephen Hundy

Principal, Canberra, Wollongong

Matthew Kucianksi

Principal, Melbourne, Ringwood

Matthew Kucianksi

Principal, Melbourne, Ringwood

T: 03 9613 5518

F: 03 9613 5599

EMAIL Matthew

Mervyn Kitay

Principal, Perth

Mervyn Kitay

Principal, Perth

Business can be tough

Our team is focused and ready to help

Contact a Principal

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