What is a Pre Pack Administration?

Описание: What is a pre pack administration? Well, a pre pack administration is a formal insolvency process, which involves the sale of the business or business assets to a connected or an unconnected buyer. Now, the big difference between a pre pack administration and a conventional one is the fact that the sale is negotiated and agreed prior to the insolvency practitioner's formal appointment.

What then happens is the sale to the new company completes, and as soon as the formal appointment of the IP is made, the old company will be liquidated shortly there afterwards. What's important for you to know are what are the conditions for you to enter into a pre pack? Well, firstly, your business must be insolvent, and secondly, you must appoint a licenced insolvency practitioner as administrator.

So one final note on Pre packs is to be clear about the aim. It's not the aim to save the insolvent company. The aim is to rescue the viable elements of the business, which will allow trade to continue and ensure there is no ongoing burden of the old company's unmanageable debts. What this will do is ensure continuous employment for your employees and maximise the return for your creditors.

So if you want to know more about prepack administrations, please call me or the real business rescue team on the free phone number or simply click on the link below.

https://www.realbusinessrescue.co.uk/...

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