20 July 2026
3 min read
#Dispute Resolution & Litigation
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The Australian Securities and Investments Commission (ASIC) has released its first detailed review of voluntary administration (VA) and deed of company arrangement (DOCA) outcomes, providing useful insight into when these processes are most likely to deliver restructuring outcomes and when alternative insolvency pathways may be more appropriate.
On 7 July 2026, ASIC published Report 836, Review of voluntary administration and deed of company arrangement process: 2021–2025. The report examines 3,528 grouped appointments involving 5,020 companies that entered voluntary administration between 1 July 2021 and 30 June 2025, making it the most comprehensive analysis of VA and DOCA processes published by ASIC to date.
ASIC’s review confirms that VA and DOCA continue to play an important role in Australia’s corporate restructuring framework, particularly for larger and more complex appointments. Around half of the appointments that proceeded to a second creditors’ meeting included a DOCA proposal. Of those proposals, 87% were accepted by creditors, representing approximately 44% of all VAs reviewed.
The data also shows a clear relationship between company size and DOCA outcomes. Appointments involving companies with liabilities exceeding $10 million were significantly more likely to result in an approved DOCA, with approximately 48.3% of those appointments leading to a DOCA. By contrast, only 15.4% of appointments involving companies with liabilities between $1 and $250,000 resulted in a DOCA.
Importantly, ASIC found that nearly half of approved DOCAs involved the company continuing to trade after the deed was executed. This supports the view that, where there is a viable underlying business, the VA and DOCA process remains a flexible mechanism to preserve value, facilitate a restructure, compromise creditor claims, or support a sale of the business or its assets.
For directors, the review reinforces the importance of seeking restructuring and insolvency advice early in the process. While the prospects of a successful DOCA remain dependent on a variety of factors affecting the relevant company, early action remains critical to achieving positive outcomes and avoiding liquidation.
For creditors, ASIC’s findings highlight the continued importance of actively engaging in the VA process. Seeking advice to understand the potential outcomes of a DOCA proposal, and how those outcomes compare with alternative solutions, can help creditors make more informed commercial decisions beyond simply receiving a dividend. Considerations include:
The data shows that there is genuine commercial benefit for creditors to scrutinise the commercial assumptions underpinning any proposal and compare the likely return against the alternative of liquidation.
In our view, the answer is yes, but with important qualifications. VAs and DOCAs remain viable and important restructuring tools, particularly for larger companies or more complex groups where there is a realistic prospect of preserving enterprise value or achieving a better return for creditors than an immediate winding up.
On the other hand, these processes may be less effective or less cost-efficient for smaller companies with relatively low liabilities. In those cases, other insolvency pathways, including the small business restructuring process, may be more suitable depending on the company’s circumstances.
The practical takeaway is that VAs and DOCAs should not be viewed as default options, but as tools to be considered carefully depending on the company’s size, creditor profile, funding position and commercial objectives. Used appropriately and early enough, they remain capable of delivering genuine restructuring outcomes.
Our Restructuring and Insolvency team at Holding Redlich can advise on all aspects of VAs, DOCAs and other corporate insolvency and restructuring options. If your business is experiencing financial distress, or you are affected by a proposed DOCA, contact us here to learn how we can assist.
Disclaimer
The information in this article is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, we do not guarantee that the information in this article is accurate at the date it is received or that it will continue to be accurate in the future.
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