In In the matter of Academy Construction & Development Pty Ltd (subject to Deed of Company Arrangement) [2024] NSWSC 808, the New South Wales Supreme Court had to determine whether to terminate a Deed of Company Arrangement (DOCA) on the basis that it was oppressive, unfairly prejudicial or discriminatory.
Key Takeaways
- While a Deed of Company Arrangement (DOCA) can provide for differential returns between creditors, it must have a sound underlying commercial rationale for doing so.
- Where a DOCA materially disadvantages a creditor or a minority of creditors, there will be a greater risk of aggrieved creditors challenging the commercial rationale put forward.
- Administrators should carefully consider the comparative benefits and…
