An accelerated administration process that requires expert handling.
Some pre-packaged administrations attract adverse publicity based on creditor unease that business owners have been able to do what appears to be a cosy deal and restart a business debt free. Nevertheless pre-packs can be a useful tool to preserve value in a potentially viable business, help retain employment and provide a swift and better outcome for creditors.
More recently the regulations around pre-packs have been tightened requiring all insolvency practitioners to 'market' the business and assets or explain why not and encourage prospective connected party purchasers to carry out a viability review and to refer the deal to a new 'pre-pack pool' and share the outcomes with creditors, the influence being if those things are not done the deal is most likely a bad one. This is bound to lead to less pre-packs and more sales of business and assets out of liquidation with its attendant TUPE advantage.
Pre-packs require careful handling by experts.
Our senior team are fully conversant with the new regulations and in the right circumstances can execute the pre-pack process quickly and ethically whilst safeguarding the value of the business. We can also justify the process to creditors and other stakeholders.
Sometimes there is a need to sell the business and/or assets arising out of an administration and you can find out more about businesses for sale both from McTear Williams & Wood and other insolvency practitioners at the UK’s leading insolvent business and asset website www.IP-BID.com – this is the UK’s online market place for buyers and sellers of businesses in distress.
lots of legal pitfalls but a Pre-pack can produce a great result