Pre-Pack Administration

A Pre-Pack Admin is one way to close your old company and open a debt-free new company, whilst almost seamlessly continuing to trade.

Pre-pack administration is an insolvency procedure where a company arranges to sell all or some of its assets to a buyer before appointing an administrator to facilitate the sale

Who should consider a pre-pack?

If the business is failing but has the potential to succeed without some of its creditor and contractual obligations – it can start over in many respects and be transferred to a new company. The new company can be owned by directors of the old company or other third parties.

Is it ethical?

Yes. The proceeds from the sale of assets are distributed to creditors, just the same as if an unrelated third-party purchased the assets during liquidation, except the third-party can be one or more directors of the insolvent company.

How does pre-pack administration differ from normal administration?

In a pre-pack admn the sale of assets is pre-negotiated before an administrator is appointed, whereas in a regular administration the administrator starts marketing the business after being appointed.

Get A Pre-Pack Administration

A Pre-Pack administration has been a turning point for many – allowing a failing business to flourish.

Pre-Pack Administration Benefits

Continuity of business

A business may change ownership with minimal disruption to its operation; this can maintain goodwill and customer confidance.

Old company released from contracts

Some contracts of the old business may not be needed by the new company, such as property and equipment leases. These contracts can legally be terminated.

Usually cheaper than administration

This may result in a better return for creditors.

Buy-back as a going concern possible

Directors or third parties have the opportunity to buy back the business, creating a new more streamlined company from the old one.

Greater control

Ensures you know the cost and outcome before the company formally enters administration.

Creditor protection

Provides the same immediate protection from creditors as nornal administration.

When can a company consider a pre-pack administration?

1. The business must be insolvent and have no viable prospect of recovery as it currently stands.

2. The insolvency practitioner and company directors must be able to show that no other solutions would be more beneficial to creditors.

3. The purchaser must be able to pay fair market value for the assets out of their own personal funds, whether it be a current director or an unrelated third party.

A win-win, especially for your employees

A pre-pack can provide the best outcome for creditors but just as importantly allows the business to continue to trade. This can be a win-win, especially for your employees

Gary Birchall - Insolvency Practitioner & Insolvency Director

-

Get A Pre-Pack Administration Consultation

When To Call You?
How Can We Help?
Your Forename
Surname
Your Mobile
Your Email

Your Privacy is important to us. In submitting your details you are consenting for us to contact you and are accepting our Data Protection and Privacy Policy.

Card image cap

We are the Focus Insolvency Group and have years of experience in dealing with complex matters for personal and corporate debts.

Speak To Us About
Pre-Pack Administration

0800 151 2602
Phone For A Free Consultation
We'll help you decide if Pre-Pack Administration is right for your business.

Pre-Pack Administration