Deed of Company Arrangement Template for United States

A Deed of Company Arrangement (DOCA) is a binding agreement between a struggling company and its creditors in the Philippines, offering a structured way to manage debt and avoid complete liquidation. It's similar to a rescue plan that lets the business keep operating while working out its financial problems.

Under Philippine corporate laws, this arrangement gives companies breathing room to restructure their debts, maintain essential operations, and protect jobs. The deed typically outlines specific payment terms, business continuation strategies, and creditor rights - making it a crucial tool for businesses facing financial distress while aiming for recovery.

Consider a Deed of Company Arrangement when your business faces serious financial difficulties but still has potential for recovery. This legal tool becomes essential when you need to negotiate with multiple creditors while keeping your company running. It's particularly useful for medium to large Philippine enterprises facing temporary cash flow problems or debt issues that threaten their survival.

The right time to pursue a DOCA is before reaching critical insolvency - ideally when you can still demonstrate a viable path to recovery. Timing matters: waiting until after creditors begin legal actions or assets are seized makes the arrangement much harder to implement. Many successful Philippine companies have used DOCAs to navigate through difficult periods and emerge stronger.

• Standard Restructuring DOCA: Most common type used in Philippines, focusing on debt repayment schedules and operational continuity
• Asset Sale DOCA: Allows for partial company sale while protecting core business operations
• Creditor-Specific DOCA: Tailored for cases with one major creditor holding significant debt
• Operations-Focused DOCA: Emphasizes business restructuring while maintaining key contracts and employees
• Holding DOCA: Temporary arrangement giving administrators more time to develop comprehensive solutions

• Company Directors: Initiate and approve the Deed of Company Arrangement, making key decisions about restructuring terms
• Administrators: Oversee the DOCA process, manage negotiations, and ensure compliance with Philippine corporate laws
• Creditors: Review, vote on, and become bound by the arrangement's terms for debt repayment
• Legal Counsel: Draft and review the DOCA, ensuring it meets regulatory requirements and protects all parties
• Company Employees: Often affected by and bound to new working arrangements under the DOCA's terms
• Securities and Exchange Commission: Monitors compliance and may need to approve certain arrangements

• Financial Assessment: Gather detailed company financial statements, debt schedules, and cash flow projections
• Creditor Details: Compile complete list of creditors, debt amounts, and security arrangements
• Business Plan: Develop realistic recovery strategy showing how company will meet DOCA obligations
• Asset Inventory: Document all company assets, their current value, and any existing claims
• Employee Impact: Outline proposed changes to workforce arrangements and obligations
• Timeline Planning: Create clear schedule for implementation and debt repayment milestones
• Documentation Review: Use our platform to generate a compliant DOCA that includes all required elements under Philippine law

• Party Details: Full legal names and addresses of the company, administrator, and all creditors
• Debt Recognition: Clear statement of total debts and individual creditor claims
• Payment Terms: Detailed repayment schedule, amounts, and conditions
• Asset Protection: Specifics about company property handling during arrangement
• Operational Terms: Business continuation parameters and management restrictions
• Creditor Rights: Voting mechanisms and rights during the arrangement period
• Duration Clause: Clear timeline and milestones for the arrangement
• Termination Terms: Conditions for early termination or default
• Governing Law: Explicit reference to Philippine corporate and insolvency laws

A Deed of Company Arrangement (DOCA) differs significantly from an Intercompany Agreement in both purpose and scope. While both documents deal with corporate relationships, they serve distinct functions in Philippine business law.

• Purpose: DOCAs are rescue tools for financially distressed companies, while Intercompany Agreements govern ongoing relationships between related companies
• Timing: DOCAs are created during financial crisis periods; Intercompany Agreements are established during normal business operations
• Legal Effect: DOCAs bind all creditors and override existing contracts; Intercompany Agreements only bind the specific companies involved
• Duration: DOCAs typically have a fixed term until debt resolution; Intercompany Agreements often continue indefinitely
• Regulatory Oversight: DOCAs require administrator approval and court supervision; Intercompany Agreements generally need only board approval