Pre-Pack Administration Reforms
Posted on 11 November 2015
Phillip Sykes president of R3 has commented on the recently announced reforms to 'Pre-Pack administrations' which includes introduction of a pool of business experts to review 'connected party' pre-packs, "The package of reforms is an important development for the UK's Businesses".
A Pre-Pack Administration is where a sale of the company's business and assets is made prior to the company entering administration. The reforms will introduce the use of a 'pool of experts' to scrutinise the proposed deal whether the purchaser is a connected party. The aim is to provide greater clarity to creditors and together with a better outcome.
The idea behind the pool of 'experts' is to review the proposed pre-pack and provide an opinion as to whether:
- It would not be unreasonable for the pre-pack to proceed
- The case for the pre-pack is not unreasonable but there is some missing evidence
- The case has not been made for the pre-pack
Should you have any questions as to whether a pre-pack administration is right for your business contact our Licensed Insolvency Practitioner Alison Byrne at our Bristol office.
I approached liquidation with trepidation not knowing what to expect after having run the business for 30 years. I was led gently through the procedure without embarrassment or pressureDirector of boutique clothing store
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