If I was forming a DOCA I would approach the Lenders,Creditors...

If I was forming a DOCA I would approach the Lenders,Creditors and existing Shareholders in the following manner.
DOCA
This DOCA is also intended to provide 100% payment of all debts and creditors outstanding to Arrium,based on ARRIUM continuing to run as a profitable going concern while returning ARRIUMS balance sheet to acceptable levels over a period of time expected not to exceed 5years.
In comparison to V.A.This may mean the earlier release of funds to lenders and creditors via certainty of debts, with partial payment of oustanding liabilities FASTER than would be available or completed via the current V.A.process as surplus funds become available on a pro-rata basis.
This will also ensure MOST if not all profits/cash generated to do so will be tax free within the current ARI company structure.

It is envisioned as ARRIUM is an overall profitable business that there will be a paying down of debt and creditors in an orderly fashion to commercially acceptable levels of debt within 5yrs along with an appreciation in shareholders equity to provide a base for ongoing lending of remaining debt to befinanced on upon normal commercial terms.

Subject to the Lenders Group,Creditors Group and SHAREHOLDERS, being willing to meet and allow the following leeway,by accepting the following terms,including waving all existing accrued and potential financial penalties,with all parties agreeing to forego any legal action against Arrium and any subsidiary,including that instigated by shareholders,which shall be subject to a binding vote and confirmed by courts in all relevant juristictions as required, if possible also that such a shareholder vote is binding on all shareholders as potential creditors of ARRIUM.
Shareholders in voting for this DOCA also accept they will be subordinating any rights as potential creditors,behind those of all other creditors,removing any future legal uncertainty
This is to provide certainty as to total debt obligations of ARRIUM for the benefit of all creditors including the lending Syndicates and to maximise business value and consequently any creditor returns and future shareholder value that may accrue.

Shareholders will forego any dividends until such time this is achieved and direct all Arrium directors to regain shareholders equity within the business,by enhancing overall business profitability and values,enhancing cash flow where possible to accelerate payments,to enable normal lending criterias to ultimately be met within this period.

If this should prove not to be the case after 5 years,then the shareholders agree and bind Directors to either sell down assets to meet outstanding debts above this level in an orderly fashion,or if not possible,enter a trade sale for the entire business,without the incurring enduring costs of a V.A. as required.

1/ Firstly all Lenders and Creditor's must agree to a stay on debts,meaning extending outstanding debts and facilities accrued prior to V.A.on the exactly the same terms,conditions and interest rates that existed prior to V.A. Waving all penalties and provide a caveat against any individual legal action for recovery of debt and penalties. With existing maturities extended initially out by the period of the V.A. or two years,whichever is the latter.This includes all trade creditors and their debt repayments.

2/ That lenders agree to extend any syndicated loans that may then mature and have been paid back proportionally or NOT in full at time of maturity until such time as the next tranch of syndicated loans matures, at which time they agree to do the same ongoing,so no lender/creditor gains an initial unfair repayment advantage,beyond loans being able to be paid down as they fall due.
The benefit for those allowing loans to roll over shall be a priority of payment when the next trance is also due for repayment,should funds be available then or before.
This is an acknowledgement that any rolled over loans are essentially providing the working capital base for ongoing business and are essentially NEW LOANS to Arrium since V.A. Enabling it to trade at minimal cost to all existing debtors and creditors benefit.
Such rolled over loans able to be reduced will be re-paid pro-rata as to the then next new maturity date along with existing loans due where possible.The lenders shall make no charges for these loan ammendments or renewals by capital loading upfront,changing interest rates or legal costs.
Lenders shall also alter loan agreements to allow earlier payment of any or all loans at ARRIUMS discretion and without financial penalty or any making good payments,PROVIDED loans are paid in the order in in which they would normally have fallen due in original loan schedules.
This is to provide surety for lenders that ARRIUM will not cherry pick loans on a greater cost basis for early repayment to the detriment of lenders who have historically provided better loan terms.
The lenders will also allow ARRIUM to raise further loans if these are used soley to reduced debt at a discount and as an exception to the above clause will allow ARI to pay down any debt at a discount should this be possible.

3/ The Creditors and Lenders to ARI shall initially defer interest payments due without penalty until such time as ARI retains sufficient working Capital to continue normal operations without further loans.Essentially as has been occurring under V.A,but will now be capped,possibly freeing up immediate funds for earlier CAPITAL distribution to all creditors/lenders after paying any outstanding interest due.
This may mean the earlier release of funds than would be available via a V.A.process.
This Cash in Bank trading figure to be set at $...........m and ARRIUMS adherance to this and any change to this to be soley with and monitored by a lender nominee as a Director to the ARRIUM Board.This to also allow the lenders nominee to allow this figure held from to be increased if deemed commercially warranted from time to time.

4/Any surplus funds accrued,beyond this said bank balance to be paid firstly to meet any employee obligations that take preference in law over secured lenders and creditors then to interest outstanding on loans,then to paying down of creditors and loan totals in equal percentages.
This (paying down of obligations to employees) as a side effect will have the benefit of increasing shareholders nominal equity for refinancing purposes,without diminishing ARRIUMS lenders/creditors rights to first call on Arriums funds beyond these legal obligations.

5/Once all interest payments have become current and once all trade creditor debt since V.A is also on 30 day terms,with the LENDER BOARD NOMINEE'S APPROVAL,then any surplus funds,after normal business considerations ,shall be paid proportionally to lenders with the nearest loan maturity and also in similar proportions to all outstanding creditors.so that no creditor group gains a proportionally unfair advantage,should ARI in the future be liquidated,or sold at a value lesser than its liabilities after 5 yrs have passed.
The only preference to be given to this distribution being outstanding creditors of less than $5000 or other higher sum as may be decided from time to time,with the LENDER Boards nominee or those in financial difficulties whom ARRIUM requires the services of for its survival,shall take preference within this pool from time to time.All such payments only to be made with the approval of the LENDER BOARDS NOMINEE along with the board,with no further creditor approval being required.
This will give a small preference to eliminating smaller debts reducing the Companies costs of ongoing distributions to small debtors.

The directors of the new board to consist initially

J.Maycock – if acceptable to lenders.
1 Financiers Nominee.
1 Union/ACTU representative
1 Creditors nominee
Others that J.Maycock or other Chairman acceptable to the lending syndicate believes may either have the industry or corporate knowledge to carry the business forward.

So on and so forth.
DYOR + DYODD