Following vocal complaints by groups of aggrieved creditors, any future pre-pack administrations will be closely scrutinised by the UK Insolvency Service.
Pre-pack administrations have proved to be a fairly rapid way for companies in severe financial difficulties to shake off debts and burdensome assets and continue trading.
But several high-profile pre-pack business administrations, including Whittards of Chelsea and Tom Hunter's USC have highlighted the simple fact that company creditors are simply shrugged off and left in the dark about what is going on.
This month a new code of practice was launched by the government with the intention of making the whole process more transparent, especially to creditors. If insolvency practitioners are putting a pre-pack deal together for businesses in administration, then creditors must be kept informed both before and after the process as to who is is dealing with the administrator, what the terms of the deal are and what was involved in selecting the individual(s) or organisation taking over the running of the business.
Yesterday's statement to parliament by the deputy head of the UK Insolvency Service, Graham Horne, was the first clear indication that the service was going to be serious in the way they policed the code. He said, “We are going to get every statement into our office and see the administrator has followed the spirit, adding that they would prioritize the policing of pre-packs.
The business specialises in providing international hospitality companies through forums and networking events a route to two key markets. The business operates on a B2B basis across the UK & France, offering events for MICE agents and end-user corpo...
RELOCATABLE
The company provides commercial vehicle repairs, servicing, and diagnostics, specialising in HGVs and LGVs. The business’s comprehensive offering includes LOLER testing, repairs, roadside assistance, MOTs, and vehicle servicing.
The company offers roofing materials to tradespeople and the general public, specialising in providing reclaimed materials. The continuous high standard of service provided by the company has enabled it to build and maintain secure relationships with...
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources
We can help you capitalise on insolvent businesses. We list UK businesses in administration, liquidation and with winding up petitions daily. Ensuring our members never miss out on an opportunity
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.