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Deed Advocacy

Olvera represents investors, fund providers and management in taking strategic advantage of changing economic environments.

Our Deed Advocacy services ensure you have the ability to maximise or minimise the impact of uncertain change on your business.

Olvera represents investors, fund providers and management in taking strategic advantage of changing economic environments to ensure that they have the ability to maximise or minimise the impact of uncertain change on their businesses. As Deed Advocates, we work with management and investors to present Deed Proposals, manage creditor support, execution, and post-deed accounting and planning.

Olvera’s private client base and executive management also combine to provide a unique equity and operational solution to complex stress situations when the optimal solution is not always clear.

Distressed acquisitions are, by their very nature, opportunistic purchases. As such, buyers often don’t have the time or ignore the reasons for the business’s failure in the first place, and in doing so fail to realise the full benefits of the acquisition. By reducing uncertainty, hedging risk, and creating a buffer that distinguishes your business from that of your competitors. Olvera puts you in the best position to take advantage of opportunities when others cannot.
WHERE IT MATTERS 

Does my business need Deed Advocacy?

Olvera’s Deed Advocacy are suited for creditors or businesses with one or more of the following concerns

1

Navigating complex Deed of Company Arrangement (DOCA) terms and requirements

2

Seeking to maximise recovery of outstanding debts during insolvency or restructuring

3

Needing support with the voting process and proxy arrangements for creditor meetings

4

Ensuring compliance and transparency in the administration and execution of Deed terms

5

Requiring post-Deed financial analysis, reporting, or ongoing management support
Our Approach

How we can help 

Our team of experts provides a comprehensive range of deed advocacy services, including

Administration Funding Support

Negotiating the selection and securing funding for the administration process, ensuring smooth progression.

Deed Proposal Preparation

Preparing a comprehensive Deed of Company Arrangement (DOCA) proposal.

Strategic Business Planning

Developing business strategies and supplier presentations to align suppliers and boost operational stability.

Stakeholder Communication

Delivering effective communication plans to keep all stakeholders informed.

Voting and Proxy Coordination

Managing voting and proxy arrangements, ensuring compliance and helping stakeholders make informed decisions.

Deed Execution Management

Managing the Deed process for a successful outcome, from finalising terms to overseeing execution.

Post-Deed Financial Reporting

Prepare detailed accounting and management statements after the Deed execution to maintain financial clarity.

Olvera Guides

Insolvency Guide

Download Olvera’s Insolvency service guide for an informative overview of our offerings and industry experience.
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Insolvency Guide
Our Experts

Your Insolvency Experts

Our team of specialist advisors are dedicated to providing expert guidance and personalised solutions for your business.

Kate Barnet

Principal

Kate Barnet is a recognised leader in the insolvency and reconstruction industry.

Get in touch with Kate

Michael Billingsley

Principal

Michael offers over two decades of international restructuring expertise, adept at innovatively supporting diverse businesses, from small firms to listed companies.

Get in touch with Michael
FAQs

Frequently Asked Questions 

Get answers to common questions about Deed Advocacy.
What are some of the mistakes investors make when purchasing a distressed business?
Too often purchasers only see the financial distress as an opportunity to discount the purchase price of a ‘good asset’ rather than an acknowledgement that the good asset is no longer good. Achieving a strategic goal is simply “completing the sale”, while financial goals and operational goals require significantly more work. What is clear is that with nearly 44% of all deals being transformational the success of these deals is being considerably overestimated at their outset.
There are usually two ways to acquire a distressed business, the traditional way through an asset sale or through a Deed of Company Arrangement. Acquiring a business through a Deed of Company Arrangement provides additional value and at lower costs than an asset sale and purchase. It is, however, more often used by incumbent owners rather than external purchasers.

The benefits of acquiring a business through a Deed of Company Arrangement are fourfold:

  • Lower transaction costs i.e., stamp duty: A deed of company arrangement does not attract stamp duty on asset values.
  • Speedier transaction period for leased assets: The Deed of Company Arrangement is a compromise of liabilities and does not consider the value of assets, such that the assets can continue to be carried at book value.
  • Minimal costs and risks: As there is no transfer of contracts from the company, the time costs and risks around achieving an assignment of customer, supplier and landlord contracts are eliminated or limited.
  • Utilisation of carry forward tax losses: To the extent the acquirer continues the same business, accrued tax losses, less any debt forgiveness, will be available to the purchaser.

Section 600A of the Act provides that the Court has powers to set aside the resolution approving the DOCA in the event that the DOCA has yet to be executed.

Section 600A provides that the DOCA resolution can be set aside if, among other things not relevant, the votes of related creditors are disregarded then the resolution that was in fact passed would not have passed (Section 600A(1)(b)(ii)).

Section 445D of the Act provides that the Court may make an order terminating a deed of company arrangement if satisfied that:

  1. information about the company’s business, property, affairs or financial circumstances that:
    • was false or misleading; and
    • can reasonably be expected to have been material to creditors of the company in deciding whether to vote in favour of the resolution that the company execute the deed;
    • was given to the administrator of the company or to such creditors; or
  2.  such information was contained in a report or statement under subsection 439A(4) that accompanied a notice of the meeting at which the resolution was passed; or
  3. there was an omission from such a report or statement and the omission can reasonably be expected to have been material to such creditors in so deciding; or
  4. there has been a material contravention of the deed by a person bound by the deed; or
  5. effect cannot be given to the deed without injustice or undue delay; or
  6. the deed or a provision of it is, an act or omission done or made under the deed was, or an act or omission proposed to be so done or made would be:
    • oppressive or unfairly prejudicial to, or unfairly discriminatory against, one or more such creditors; or
    • contrary to the interests of the creditors of the company as a whole; or
  7.  the deed should be terminated for some other reason.

Accordingly, an application may be brought under subsection 445B (a), (b), (c), (e) and/or (f) of the Act seeking to terminate the DOCA returning the Company to liquidation. That application can be brought by an interested party or creditor of the Company (Section 445B(2)).

All these issues can be addressed through careful planning, negotiation, and clear disclosure in the Administrators Report and Deed Proposal.

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