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In a Deed of Company Arrangement (DOCA), the creditors of a company appoint one of the Kazar Slaven partners to act as the deed administrator.
DOCA offers creditors the potential of greater return than if the company were to be placed into liquidation. This can be achieved in a number of ways; for example, the contribution from directors or members or the injection of capital by an investor or purchaser. For creditors to accept a DOCA proposal, it’s necessary for the administrator to demonstrate that the likely result would produce a better outcome than the winding up of the company.
The DOCA binds the deed administrator, the company and its officers and members, and for the duration of the DOCA, the company will be required to show the words “subject to deed of company arrangement” on every public document.