Deed of company
arrangements
A structured path forward when your business needs breathing room and a fresh start
What is a deed of company arrangement?
A DOCA is a formal agreement struck between your company and its creditors during Voluntary Administration. It sets out a plan to manage your debts while keeping the business alive, offering creditors a better outcome than liquidation and giving your company a genuine chance to recover.
Benefits
Keep your business alive
A DOCA lets you restructure debt while continuing operations
Flexibility
Negotiate terms that work for everyone
A registered insolvency practitioner takes control immediately.
Recovery
Return to profitability on your terms
The administrator examines the business and develops options.
Control
Stay involved in the process
Unlike liquidation, a DOCA keeps you and your team in the picture
Process
How a DOCA unfolds
From entering administration to rebuilding your business
Questions
Find answers to the most common questions about DOCAs and how they work
What exactly is a DOCA?
A DOCA is a formal agreement between your company and its creditors, negotiated during Voluntary Administration. It sets out how debts will be managed and allows the business to continue operating under new terms, giving creditors a better return than liquidation would provide.
Who can propose a DOCA?
The administrator of a company in Voluntary Administration typically proposes a DOCA. You, as the director, work with them to develop terms that creditors will accept. The proposal must be put to a meeting of creditors for a vote.
Can I keep my business running?
Yes. A DOCA allows your business to continue trading while you work through the arrangement with creditors. This is one of its key advantages over liquidation, where the business typically ceases operations.
What happens to creditors?
Creditors vote on the DOCA proposal and decide whether to accept it. If approved, they receive payments according to the agreed terms, which are usually better than what they would get in a liquidation scenario.
How long does a DOCA take?
The process typically takes several months from the start of Voluntary Administration through to DOCA implementation. The exact timeline depends on the complexity of your business and creditor negotiations.
What are the risks involved?
If the DOCA fails or creditors reject it, the company may move to liquidation. There is also the risk that trading conditions worsen during the process. Working with experienced advisors helps minimize these risks.
Do I lose control of my business?
During Voluntary Administration, an external administrator takes control. However, a successful DOCA can return management to you or your chosen team, allowing you to rebuild the business.
How does Varden Pierce help?
We assess whether a DOCA is viable for your situation, prepare all necessary documentation and proposals, and connect you with a registered insolvency practitioner to guide the process through to implementation.
What if creditors reject the DOCA?
If creditors vote against the DOCA, the company typically enters liquidation. This is why preparation and creditor communication beforehand are critical to building support for your proposal.
Can a DOCA be modified later?
Yes, a DOCA can be varied by agreement with creditors if circumstances change significantly. This flexibility allows businesses to adapt as trading conditions improve or challenges emerge.
Still have questions?
Contact Varden Pierce for confidential guidance