Abstract
If a voluntary administration procedure doesn't result in the liquidation (winding up) of a company, the usual outcome is the creditors' approval- and the company's execution - of a deed of company arrangement (Do CA): Corporations Act 2001 (Cth) s 439C. Division 10 of Pt 5.3A of the- Corporations Act provides for the execution and effect of a DoCA.
Recent empirical research (albeit based on limited sampling) suggests that DoCAs have proven to be a modestly successful feature of Pt 5.3A.1 While it appears that most DoCAs do not achieve the lofty ambition of a 'turnaround' or 'rescue' of an insolvent (or near-insolvent) company, this research does suggest that DoCAs do have a healthy track record of delivering a better return to creditors than would result from companies being simply wound up.
Recent empirical research (albeit based on limited sampling) suggests that DoCAs have proven to be a modestly successful feature of Pt 5.3A.1 While it appears that most DoCAs do not achieve the lofty ambition of a 'turnaround' or 'rescue' of an insolvent (or near-insolvent) company, this research does suggest that DoCAs do have a healthy track record of delivering a better return to creditors than would result from companies being simply wound up.
| Original language | English |
|---|---|
| Title of host publication | Australian insolvency law |
| Subtitle of host publication | cases and materials |
| Place of Publication | Australia |
| Publisher | LexisNexis Butterworths |
| Pages | 417-468 |
| Number of pages | 52 |
| ISBN (Electronic) | 9780409340464 |
| ISBN (Print) | 9780409340457 |
| Publication status | Published - 2016 |