businessadvice-prepack

Pre pack administrations have been regularly appearing in the media in the past year or so and whilst many people consider these arrangements to be at the detriment of the creditors this is not always the case.

When the administration is pre packed correctly it allows for a quick and efficient sale of the business to ensure the business is rescued with minimum disruption to trade. It also means that jobs can be saved and that the goodwill of the company is preserved.

This then allows the trade creditors the option to continue trading with the company and in turn their own cash flow does not suffer as a result of not being able to trade with the company.

The purchasers involved in the pre pack administration can be the current owners, a third party or even the directors of the company. There is a list of 17 details which must be disclosed in the pre pack proposal, as outlined in Statement of Insolvency Practice 16 which is available to download below.

At DCA Business Recovery we ensure that the details of the Pre Pack arrangement are transparent and that the maximum value is received for the business. Whilst this is the duty of any office holder, we feel that our honest and direct approach to the situation at hand allows the process to be as straightforward and stress free as possible, for all parties concerned.

Please contact us to discuss this further and we will be happy to assist with any questions you may have.