Deed Advocacy
Our Deed Advocacy services ensure you have the ability to maximise or minimise the impact of uncertain change on your business.
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.
WHERE IT MATTERS
Does my business need Deed Advocacy?
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Our Approach
How we can help
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
Our Experts
Your Insolvency Experts
Kate Barnet
Kate Barnet is a recognised leader in the insolvency and reconstruction industry.
Tony Wright
FAQs
Frequently Asked Questions
What are some of the mistakes investors make when purchasing a distressed business?
How do I acquire a distressed business?
What are the benefits of acquiring a business through a Deed of Company Arrangement?
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.
What do investors need to know about setting aside a resolution or terminating a Deed?
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:
- 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
- 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
- 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
- there has been a material contravention of the deed by a person bound by the deed; or
- effect cannot be given to the deed without injustice or undue delay; or
- 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
- 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.
Resources
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