FAQs for Directors

Pre-pack Administrations

  1. What are the advantages and disadvantages of a Pre-pack Administration
    A pre-pack administration is a very effective and quick way of saving a business.  However, they are not usually popular with creditors because they find out the business has sold after the sale has taken place and it is then too late to do anything about it.  Read more
  2. Pre-pack administration - what you need to know
    A Pre-Pack Administration is where the buyer of the business has been agreed before the date of the Administration order. On the date of Administration the business is sold and then the majority of the creditors, shareholders and employees are notified after the event. Pre-packs were designed to preserve the value of the business by allowing a very quick sale.  Read more
  3. When should I use a pre-pack administration?
    A pre-pack administration is beneficial when you have an insolvent business worth saving and know a potential business buyer. This buyer may be the existing shareholders and management or alternatively you may know another possible buyer or feel that advertising would help find a buyer in a short period of time.