Benefits of a Pre-Pack Administration

Thinking of a Pre-Pack Administration? What Are The Options?

A Pre-Pack Administration (or Pre-packaged Administration) is the most commonly used instrument within the insolvency sector. Its purpose is to allow a so-called phoenix company (the company that you wish to become) to buy the assets of the present ‘old’ company in preference to other creditors, with some exceptions. This is one of the main benefits of a pre-pack administration.

Typically a pre-pack enables the recovery of a business which is otherwise quite viable but is unable to repay outstanding debts and may have long term cash flow issues. Other benefits of a pre-pack administration include:

• Write-off of debt arrears (not debentures or personal guarantees)
• Continuity of income for directors and staff employees
• Continuity of dividend benefits for shareholders (and/or directors)
• Business is released from contracts and leases no longer required
• Continuation of business as usual for suppliers and customers alike
• No disruption in local economy, particularly if a large employer.

Here are some other aspects of the benefits of a pre-pack administration in terms of how such a proposal might work in practice:

• Directors’ credit history is safeguarded
• The sale of assets of the business is agreed prior to action
• No creditor meeting for the liquidation of the old company is necessary
• No local advertising or filing in local courts is necessary
• No disruption to day-to-day activities (staff and customers may even be unaware)
• Old company could be dissolved by the IP rather than liquidated, as a safeguard to reputation

A pre-pack administration is a much more discreet procedure than a bankruptcy or a liquidation, with all the publicity and commotion that involves, impinging as it does on the overall reputation of the business and also its credit worthiness.

Free Initial Consultancy

If you would like to talk about pre-pack administration to an expert with 17 years insolvency and company rescue experience then enter your details below for a no-obligation chat.

However, if you need help with personal debt (rather than business related debt) go to our free debt management plan application form.

We specialise in the following:

business debt factoring
invoice discounting
business bankruptcy
business finance
company bankruptcy
voluntary arrangement

pre pack administration

voluntary liquidation
business liquidation
wrongful trading
business insolvency
business rescue
business turnaround

pre pack liquidation

Site Map

Pre Pack Administration

Pre Pack Administration Help

Pre Pack Administration Advice

Pre Pack Administration Solicitor

Pre Pack Administration Lawyer

Pre Pack Administration Service

Benefits of a Pre-Pack Administration

Advantages of a Pre-Pack Administration