Deed of Company Arrangement
A binding agreement between a company and its creditors, arising from administration, setting out how the company's affairs will be dealt with.
What a deed does
A deed of company arrangement, often shortened to DOCA, is a formal, binding arrangement between a company and its creditors that usually follows a voluntary administration. It sets out how the company's affairs will be handled with the goal of producing a better outcome for creditors than immediate liquidation. The terms can vary widely, for example a contribution of funds, a payment over time, or a compromise of debts.
Effect on creditors
Once approved by creditors and executed, a deed generally binds all creditors whose claims fall within it, even those who voted against it, in line with its terms. Creditors typically receive what the deed provides rather than pursuing the company directly. This is general information only and not legal or financial advice. If a debtor proposes a deed, you can refer a debt to talk through what it means for you.
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