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Watch: What is a Deed of Company Arrangement (DOCA)?
The economic challenge that we face today, is greater than anything any of us have faced in our lifetime. But whilst this is an enormous challenge for businesses around the world, there is also an opportunity. There’s an opportunity to fix your business today in a way that will make it stronger when the market rebounds.
What is a Deed of Company Arrangement (DOCA)?
A DOCA is an agreement between a company and its creditors to restructure or extinguish the company’s liabilities and allow the company to continue without the burden of excessive debts.
A DOCA is a powerful legal mechanism that only requires a simple majority of a company’s creditors (greater than 50% of both number and value) to become binding on all of the company’s unsecured creditors.
It is typically used when a company’s debts have become excessive for the company’s business to repay and it avoids:
- The need for the company to be liquidated; and
- The company’s directors to be sued for insolvent trading.
Would you like to give your business a second chance?
Download here our step by step guide into just how powerful this unique tool can be. Inside we cover the following topics:
- What is a Deed of Company Arrangement (DOCA)?
- How is a DOCA achieved?
- How much does a DOCA cost & how can it be funded?
- How long does a DOCA take?
- Are there any restrictions on what a DOCA can achieve?
The window is closing, to start to restructure your balance sheet. The key thing is to act now so that you can have your restructure finished and the balance sheet cleaned when this window closes, and you’re ready to take advantage of the market rebound.
We want to use our experience to help you create a restructuring plan that will clean your balance sheet and position you for the upswing. Please call us now, because we need the time that we’ve currently got to get you through this.
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