Using DOCAS To Preserve SOPA Claims In Administrations?

Commercial Context

Construction companies are often thinly capitalised and do not hold significant real property or other assets. Often their most significant (and sometimes their only) assets are unpaid progress claims arising from construction work undertaken prior to entering into external administration.

Progress claims however can be difficult to recover. They can be subject to cross-claims arising in favour of counterparties, the resolution of which may require time consuming and expensive litigation. Often administrators and liquidators do not have available funds to pursue such disputes meaning that these assets are not realised with the creditors left to receive no dividends in a winding up.