More detail on UK pre-packs needed

Author: Gemma Varriale | Published: 2 Jul 2014

Recommendations aimed at cleaning up the negative image of pre-pack administrations have been met with scepticism from key industry participants.

Senior accountant Teresa Graham spearheaded the UK government-commissioned review of pre-packs which occur when an administrator sells the business at, or soon after, their appointment – often to the existing owners or directors.

Backing a voluntary regime, the report proposed creating a pool of experienced business people to independently scrutinise connected party pre-pack deals. Under the plans, members of the pool should spend no longer than half a day reviewing the proposals.

The proposals aim to boost transparency and restore the confidence of unsecured creditors...