Pre Pack Administration – Help & Advice
Sep 01, 2010 in Banking/Finance
The term Pre Pack Administration describes the process where an insolvent company that has gone into administration immediately sells its assets to a third party, before beginning formal insolvency proceedings. The principle of Pre Pack Administrations is to allow the company to realize as much value from the sale of its assets, while at the same time reduce its debt, so it emerges from the process as a much more viable business.
To enable a company to get into a position where it can continue trading, Pre Pack Administrations are sometimes used to help the current management buy the assets of the business, in order to set up a new company that is financially stronger. (more…)
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