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A Deed of Company Arrangement (DOCA) is a legally binding agreement between a struggling company and its creditors that sets out how the business's affairs and assets will be managed. It's one of the key tools in UK insolvency law that helps companies avoid liquidation by creating a formal plan to pay debts and continue trading.

When approved by creditors and registered with Companies House, a DOCA restructures the company's obligations and typically offers better returns than immediate closure. The arrangement might include partial debt write-offs, extended payment terms, or asset sales - all supervised by an insolvency practitioner who ensures both the company and creditors stick to the agreed terms.

Consider a Deed of Company Arrangement when your business faces serious financial difficulties but still has potential for recovery. This solution works best when your company has a viable future trading model but needs breathing space from creditor pressure to restructure its debts and operations.

The perfect timing is after informal negotiations with creditors haven't succeeded, but before the situation deteriorates to the point where liquidation becomes inevitable. A DOCA proves especially valuable when you can demonstrate that creditors would receive better returns through a managed restructuring than through immediate liquidation. Early action is crucial - waiting until suppliers stop delivering or staff start leaving often limits your options.

• Lump Sum DOCAs: Offers creditors a one-time payment, often funded by directors or third parties, providing quick resolution and certainty
• Trading DOCAs: Allows continued business operations while restructuring debt through regular payments from ongoing revenue
• Asset Sale DOCAs: Focuses on selling specific company assets to generate funds for creditor payments
• Holding DOCAs: Temporarily maintains company status while administrators explore better options or wait for market conditions to improve
• Creditor Trust DOCAs: Transfers assets to a trust structure, offering more flexible distribution arrangements and tax benefits

• Insolvency Practitioners: Lead the process as administrators, drafting and implementing the DOCA while supervising the company's affairs
• Company Directors: Provide essential information, cooperate with the administrator, and often contribute personal funds to support the arrangement
• Creditors: Vote on the proposed arrangement and become bound by its terms once approved by the majority
• Legal Advisers: Help draft and review the DOCA terms, ensuring compliance with insolvency laws and protecting all parties' interests
• Employees: Become affected parties under the arrangement, with their entitlements and ongoing employment terms often modified

• Financial Analysis: Compile detailed company accounts, asset valuations, and projected cash flows to demonstrate viability
• Creditor Details: Gather complete lists of all creditors, debt amounts, and security arrangements
• Business Plan: Document how the company will trade differently to avoid previous issues and meet DOCA obligations
• Proposal Terms: Outline payment schedules, debt compromises, and timeline for the arrangement
• Stakeholder Input: Consult key creditors informally before formal proposals to gauge support levels
• Documentation: Use our platform to generate a legally compliant DOCA that includes all required elements

• Party Details: Full legal names and addresses of the company, administrator, and bound creditors
• Asset Schedule: Comprehensive list of company assets and their agreed valuations
• Payment Terms: Clear timeline and amounts for distributions to different creditor classes
• Administrator Powers: Specific authorities granted for managing the company's affairs
• Creditor Rights: Voting mechanisms and treatment of different creditor categories
• Termination Clauses: Conditions for ending the arrangement, including default scenarios
• Execution Block: Proper signing sections for all parties, with witness requirements

A Deed of Company Arrangement (DOCA) differs significantly from a Trust Deed, though both deal with financial restructuring. While a DOCA is specifically designed for company insolvency situations under formal administration, a Trust Deed typically involves individual debt management or property holdings.

• Legal Framework: DOCAs operate under corporate insolvency laws with administrator oversight, while Trust Deeds function under trust law with trustee management
• Parties Involved: DOCAs involve company creditors, directors, and an administrator; Trust Deeds usually involve individual debtors, beneficiaries, and trustees
• Purpose: DOCAs aim to save viable businesses through structured debt repayment and operational restructuring; Trust Deeds primarily protect and manage assets or personal debt arrangements
• Flexibility: DOCAs offer more complex restructuring options for business continuation; Trust Deeds typically have more rigid terms focused on asset protection or debt settlement