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A Deed of Company Arrangement offers struggling Danish businesses a formal path to restructure their debts and continue operating. It's a legally binding agreement between a company and its creditors, similar to the Danish reconstruction process under the Bankruptcy Act, but with more flexibility in how the company can resolve its financial troubles.

Under Danish law, this arrangement lets businesses avoid immediate bankruptcy by creating a clear plan to pay creditors over time. The company keeps trading while implementing changes like selling assets, adjusting operations, or reorganizing debt payments. Both the company's board and a majority of creditors must approve the plan, making it an effective tool for business recovery.

Consider a Deed of Company Arrangement when your Danish business faces serious financial difficulties but remains viable with the right restructuring. This solution works best when you need to negotiate with multiple creditors while keeping your business running, especially if bankruptcy would destroy more value than a controlled restructuring.

Timing is crucial - start the process before severe cash flow problems force immediate closure. The arrangement proves particularly valuable when you have sustainable revenue but temporary payment issues, valuable contracts worth preserving, or skilled employees you need to retain. Danish companies often use this approach during market downturns or when major customers default on payments.

• Basic Payment Plan: Most common type of Deed of Company Arrangement in Denmark, focusing on structured debt repayment over 1-3 years
• Asset Sale Structure: Involves selling specific company assets while maintaining core operations
• Operational Restructuring: Combines debt management with business model changes and cost reduction plans
• Creditor-Specific Arrangement: Tailored for companies with different classes of creditors, offering varied terms for secured and unsecured debt
• Time-Limited Trading: Allows continued operations for a set period while implementing major organizational changes

• Company Directors: Initiate and oversee the Deed of Company Arrangement process, working with advisors to develop viable restructuring plans
• Insolvency Practitioners: Supervise the arrangement's implementation and ensure compliance with Danish bankruptcy laws
• Creditors: Review, negotiate, and vote on the proposed arrangement terms, becoming bound by the agreement once approved
• Legal Advisors: Draft the deed, ensure legal compliance, and advise on restructuring options under Danish law
• Employees: Key stakeholders affected by the arrangement, often with specific provisions protecting their interests

• Financial Assessment: Gather detailed company accounts, debt schedules, and cash flow projections to form the basis of your restructuring plan
• Creditor Details: Compile a complete list of creditors, amounts owed, and security arrangements under Danish law
• Business Viability: Document your turnaround strategy, including cost-cutting measures and revenue improvement plans
• Asset Valuation: Obtain current market valuations for company assets and potential collateral
• Employee Impact: Outline how the arrangement affects staff contracts and entitlements
• Timeline Planning: Create a realistic schedule for implementing changes and meeting payment obligations

• Company Details: Full legal name, registration number, and registered office address under Danish law
• Creditor Information: Complete list of creditors, claim amounts, and payment terms arranged by priority
• Payment Schedule: Detailed timeline of debt repayments, including amounts and deadlines
• Administrator Powers: Specific authority granted to the appointed administrator
• Moratorium Terms: Clear statement of creditor restrictions during the arrangement period
• Termination Clauses: Conditions for ending the arrangement, including default scenarios
• Binding Effect: Statement confirming the arrangement binds all affected parties under Danish insolvency law

A Deed of Company Arrangement differs significantly from an Intercompany Agreement in both purpose and legal effect under Danish law. While both documents involve corporate relationships, they serve distinct functions in business operations.

• Purpose and Timing: A Deed of Company Arrangement addresses financial distress and restructuring, while Intercompany Agreements govern ongoing relationships between related companies during normal operations
• Legal Effect: Company Arrangements bind all creditors once approved, whereas Intercompany Agreements only affect the specific companies that sign them
• Oversight Requirements: Company Arrangements require administrator supervision and court approval, while Intercompany Agreements typically don't need external oversight
• Duration: Company Arrangements are temporary measures until financial stability returns, whereas Intercompany Agreements often establish long-term operational frameworks