We can assist in the preparation of Deeds of Company Arrangement (DOCA’s) for companies that are facing the prospect of liquidation. We find that for many companies in this position, a DOCA can be the best strategy to assist in the ultimate survival of the company.
A DOCA is a binding financial agreement between a company and its creditors. It primarily sets out how the company and its assets are to be managed, as well as the degree to which the company will be released from its liabilities.
We have found that DOCA’s can be a powerful tool in assisting parties in coming to a commercial agreement in times of financial stress. Such an agreement will generally benefit everyone involved, with creditors likely to recoup more than they would have otherwise received, and debtors more likely to survive the process.
