Deed of Company Agreement (DOCA)
The Situation
A large transport company provided services predominantly to growers of fresh produce and operated with an extensive company fleet, throughout various states in Australia. The Company owed money to secured and unsecured creditors and employee entitlements.
The Solution
The Company had various OH&S issues on appointment and as a result we ensured the business was regulated and compliant throughout. Through the restructure of management and operational systems, we were able to improve profitability and trade on the Company.
Seasonal influences and bad weather affected negatively ongoing trade proving a DOCA to be the final solution. We administered the DOCA resulting in dividends to secured creditors, employees and unsecured creditors.
The Outcome
The Company continued to trade and payments were made to creditors, this was made possible through the analysis of key operational systems. This analysis assisted the business restructure; eliminating non-profitable runs and implementing systems to allow the business to see profitable runs across all states.
SV Partners, exhausted all possible solutions for the transport company and the final solution was the DOCA that allowed:
1. The realisation and sale of company assets in order to disburse funds to secured creditors
2. A major secured creditor to be paid in full
3. The payment of staff superannuation and leave entitlements