A Fast-Tracked DOCA Solution for a Golf Resort Venue

By Timothy Pope, Senior Manager

This engagement involved a resort and restaurant operating as part of a larger golf course. Confidentiality has been maintained throughout.

Background

The director contacted us directly via a cold call while seeking urgent advice. He had approached several firms for guidance.

Through that initial scoping conversation, and a quick turnaround with tailored advice, they felt comfortable enough to move forward with B&T Advisory, even though there was no existing relationship or referral.

The Challenges

There were several moving parts that made this engagement challenging:

A winding up application had already been lodged by the ATO. That meant the clock was ticking. If nothing happened, there was a court date and the ATO was pushing for liquidation.
The director and related entities were fairly well known in the state, so media attention was a real risk.
The business employed around 48 staff. That’s a significant payroll, with associated liabilities to understand quickly.
The operation itself included a licensed restaurant, pre-booked guests, and scheduled functions. Simply shutting it down would have created immediate disruption and reputational fallout.
The director wasn’t actively involved in day-to-day operations. They had multiple ventures and limited availability, so we relied heavily on senior management at the resort. That added complexity because decisions still needed to flow back up the chain of command. For example, managers knew which utilities existed and how the property ran, but authority to sign off still rested with the director, and later the administrator.

Strategy and Solution

Given the winding up application and the director’s ineligibility for a small business restructuring process, the options were limited. The only viable path was voluntary administration, with the ultimate goal of proposing a deed of company arrangement (DOCA).

Timing was tight. The process needed to begin almost immediately to meet statutory deadlines before the court hearing. Rather than taking on trading ourselves, which would involve significant cost and operational responsibility, we licensed the business to a related entity. This shifted day-to-day trading, supplier relationships, and operational risk to the licensee.

We worked quickly with trusted local lawyers to draft the licence agreement. This approach reduced costs, limited disruption, and ultimately supported a better return to creditors. A registered valuer was also engaged to assess the business assets and value.

There was some consideration of offering the business for sale, but that wasn’t feasible. The premises were owned by another entity controlled by the director, and they weren’t prepared to allow a new tenant. That effectively narrowed the path to voluntary administration followed by a DOCA proposal from the director.

Outcomes

The outcomes were strong, particularly given the circumstances:

The licensing arrangement allowed trading to continue with little to no disruption.
Existing bookings and functions went ahead as planned, essentially business as usual.
All staff were retained and continued accruing entitlements.
The DOCA delivered a better return to creditors than liquidation would have.
Employee commissions and superannuation totalling around $190,000 were paid in full.
The entire voluntary administration to DOCA process was completed in just 16 business days, a very quick turnaround driven by a coordinated team effort.

How the business reached this point

The director had multiple businesses and competing priorities.

There were also indications that professional advisors weren’t being engaged consistently. By contrast, once we were engaged, we immediately brought together a team of lawyers and other specialists to handle licensing arrangements, security issues, creditor claims, and the DOCA itself.

The tax debt exceeded $4 million, so it’s likely there had been significant prior communication from the ATO. The key issue appeared to be leaving it too late to seek structured external advice. Timing was critical, had the director contacted us even a day later, the court process may have overtaken the voluntary administration pathway.

Key takeaways

Seek external advice early, particularly when dealing with tax liabilities.
Maintain trusted professional advisors across accounting and legal matters.
For operational businesses, a hands-on approach from directors is important.
Acting quickly can preserve trading, protect staff, and improve creditor outcomes.

In this case, rapid engagement, tailored advice, and a practical licensing strategy allowed the business to continue operating, preserved jobs, and delivered a significantly better outcome than liquidation.