WHAT IS A PRE-PACK ADMINISTRATION?
Pre-pack administration is an Insolvency process allowing the purchase of an Insolvent company’s assets.
A Licensed Insolvency Practitioner (IP) is required to act as Administrator of the company. The appointment of an Administrator takes place at a point of proceedings, so to expedite a sale.
By doing this before there appointment, it protects jobs, preserves asset values, and sustains business momentum.
Assets will transfer to a newly formed company, and continuity of trade is usually assured.
To do a Pre-Pack, the business is required to be valued. It is essential to ensure you cross the “T’s” and dot the “I’s” when carrying out a Pre-Pack. Creditors will take note of what is happening, are things transferred at fair value, so ensure you seek early advice from the to be appointed Administrator.
Please note a Pre-Pack Administration is for the sale of ASSETS and not the COMPANY.
For further help on a Pre-Pack contact HBG Advisory.
Suitable for pre-pack administration?
- Subject to stringent legislation. The officeholder is required to demonstrate that the process offers the best outcome for creditors.
Why a pre-pack administration?
- Preservation of asset values:
- Adverse press subdued:
- Enables business continuity:
- Better outcome for Creditors:
- Job protection:
TUPE: Pre-Pack administration
The Transfer of Undertakings (Protection of Employment) regulations, or TUPE, protects the contracts of employees when they move from one company to a new one.
TUPE is strictly adhered to and is the responsibility a company directors need to be aware.
Jobs usually are preserved with a pre-pack. Redundancies are sometimes necessary, and the way you administer these is crucial. You must comply with TUPE regulations to avoid potential claims of unfair dismissal.
HBG Advisory may assist on remaining compliant and avoid fines for failing to comply.
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