This article will address the implications for Division 7A loan assets on a company’s balance sheet that has entered into a Deed of Company Arrangement (DOCA) in Australia. The DOCA is expected to pay creditors approximately 10 cents in the dollar.

Generally, the DOCA will not affect the Division 7A loan assets, as they are not compromised or otherwise dealt with. So, during the DOCA period, the company’s assets, including the loan asset, will still be available to the company as per usual. This means the company can continue to use its equipment, inventory, debt and receivables to trade as normal. This also means the company will continue