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A Deed of Company Arrangement (DOCA) is a binding agreement between a struggling company and its creditors that maps out how the business will handle its debts and operations moving forward. It's one of the key tools in NZ's voluntary administration process, giving companies a chance to avoid liquidation and trade their way back to health.

Under the Companies Act 1993, this deed sets out specific terms for debt repayment, business restructuring, and management changes. It typically includes payment schedules, debt write-offs, and operational reforms - all designed to give the company breathing room while ensuring creditors get the best possible outcome. Once approved by creditors and signed, it becomes legally enforceable.

Consider a Deed of Company Arrangement when your company faces serious financial difficulties but still has potential for recovery. This option works best if your business has a viable future but needs breathing space to restructure debts and operations. It's particularly valuable when you have supportive creditors who prefer getting paid over time rather than forcing immediate liquidation.

The timing is crucial - you'll need to act before creditors start legal proceedings. This path makes sense when your cash flow problems are temporary, you have a solid turnaround plan, and continuing the business would give creditors a better return than shutting down. Many NZ companies use DOCAs successfully during seasonal downturns or when major contracts are delayed.

• Moratorium-focused DOCAs: Pause creditor actions while maintaining operations, letting the business stabilize and restructure debt payments over time
• Asset sale arrangements: Allow controlled sale of specific assets to pay creditors while keeping core business running
• Debt compromise DOCAs: Negotiate reduced payment amounts with creditors in exchange for faster settlement
• Operations-based arrangements: Focus on business restructuring, cost-cutting, and improved management practices
• Holding DOCAs: Provide temporary protection while developing a more detailed long-term arrangement

• Company Directors: Initiate the arrangement and remain responsible for day-to-day operations under the deed's terms
• Voluntary Administrator: Develops and oversees the arrangement, ensuring compliance with agreed terms
• Creditors: Vote on the arrangement and become bound by its terms once approved
• Legal Advisors: Draft and review the deed, ensuring it meets Companies Act requirements
• Employees: Often affected parties whose entitlements and ongoing employment terms are covered
• Deed Administrator: Monitors and enforces the arrangement after it takes effect

• Financial Assessment: Gather detailed company accounts, asset listings, and current debt obligations
• Creditor Details: Compile complete list of creditors, amounts owed, and security arrangements
• Business Plan: Document realistic trading forecasts and proposed restructuring measures
• Employee Information: List all staff, their entitlements, and planned workforce changes
• Timeline Planning: Set clear milestones for debt repayment and business reforms
• Legal Requirements: Use our platform to generate a compliant DOCA that meets Companies Act standards
• Stakeholder Input: Get feedback from key creditors before finalizing terms

• Identification Section: Full legal names and details of the company, administrator, and major creditors
• Purpose Statement: Clear outline of the arrangement's objectives and intended outcomes
• Asset Details: Complete inventory of company assets and their proposed treatment
• Payment Terms: Specific schedules for debt repayment, including amounts and timeframes
• Creditor Rights: Clear statement of creditors' rights and how claims will be handled
• Administration Powers: Defined scope of administrator's authority and responsibilities
• Termination Conditions: Circumstances under which the deed can be varied or terminated
• Execution Block: Proper signature sections for all required parties

A Deed of Company Arrangement differs significantly from a Guarantee Deed in both purpose and scope. While both are legally binding documents, they serve distinct functions in business operations.

• Primary Purpose: A DOCA restructures an insolvent company's affairs and debts, while a Guarantee Deed provides security for specific obligations or loans
• Timing of Use: DOCAs come into play during voluntary administration, whereas Guarantee Deeds are typically created at the start of a business relationship
• Parties Involved: DOCAs bind all creditors and the company, while Guarantee Deeds typically involve just the guarantor, creditor, and primary debtor
• Duration: DOCAs have specific end dates when obligations are fulfilled, but Guarantee Deeds often remain active until the underlying debt is fully repaid
• Legal Effect: DOCAs can modify multiple creditor claims simultaneously, while Guarantee Deeds create new, separate obligations