What is 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 LLP.
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: