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ARTICLE · 22 OCTOBER 2025

Blackbird Swoops In Effort To Extinguish Secured Creditor's Rights Under DOCA

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This case is a reminder that creditors should carefully identify and assess any restrictions imposed on enforcement of security interests under a DOCA.

AustraliaFinance and Banking
Mark Wilks
Mark Wilks
Brooke Egan
Brooke Egan
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This week's TGIF considers the recent Full Federal Court decision of Blackbird First Mortgage Corporation v Jacobs [2025] FCAFC 136. The Full Federal Court considered whether a DOCA prevented a secured creditor from exercising enforcement rights in relation to new advances.

Key takeaways

  • Secured creditors should prudently review the terms of a deed of company arrangement (DOCA) to identify any restrictions on enforcement rights with respect to pre-existing debts and new advances.
  • Subject to the terms of the DOCA, carefully constructed loan agreements and security documents can preserve a secured creditor's enforcement rights for new advances made post entry into the DOCA.

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