What is it?
A DOCA is a binding agreement between a company and its creditors that governs how the company’s affairs will be dealt with.
If a DOCA is executed, then the administrator of your company will become administrator of the DOCA unless your creditors resolve otherwise. Your company must also execute a DOCA within 15 business days after the second creditors’ meeting. If this doesn’t happen, then the company will automatically go into liquidation, with the voluntary administrator becoming the liquidator. A DOCA also binds all unsecured creditors whether or not they voted against the proposal.
What you need to do
If your creditors vote to go down the path of a DOCA, you must execute one within 15 business days. If you are a creditor, before you decide how to vote, make sure you understand how the deed will affect the priority of payment of your debt or claim.
Speak to our professional team on 1300 788 788 for IMMEDIATE solutions for your business.
Enquire online now.