Can't Repay Bounce Back Loan? Get Free Advice

Require Immediate Support? Free Director Helpline: 0800 644 6080

Real Business Rescue

Free Director Helpline: 0800 644 6080

Pre Pack Administration advice for insolvent companies

Share:

Published:

Video placeholder
 
 
 

Free Business Review Find Your Nearest Office

Video Script

If your company has entered insolvency or creditors are threatening legal action to recover their debts, pre-pack administration may be a suitable solution. It is an official insolvency procedure whereby underlying assets are sold quickly, prior to appointing an administrator to oversee the process.

This video explains how pre-pack administration works, and the conditions that must be met before the procedure can be adopted.

A key element of pre-pack administration is that the administrator works in the best interests of your company’s creditors as well as the company, and supporting proof is required that this has been the case.

The underlying assets of a business can be sold on to a third party or trade buyer via pre-pack administration. It is also possible for the existing directors of the insolvent company to purchase the assets with personal funds and set up a ‘newco.’

Need to speak to someone?

If your company is struggling with unmanageable debts, squeezed cash flow, or an uncertain future, you are far from alone. We speak to company directors just like you every single day, and we are here to give you the help and advice you need.
Call our team today on 0800 644 6080

Other procedures should also be considered by the appointed insolvency practitioner and if pre-pack is decided upon, all your company’s assets must be professionally valued before sale.

This video also explains the advantages of pre-pack administration for the different parties involved. It means the company can operate without the burden of heavy debt, maintain trading relationships with suppliers, whilst complying with the stringent UK laws surrounding the procedure.

Measures are in place to prevent abuse of this process, including the requirement for proof that the purchasing entity will be viable regardless of whether the assets are sold to an existing company or a newco.

Contact the RBR Team Today


Here at Real Business Rescue we take your privacy seriously and will only use your personal information to contact you with regards to your enquiry. We will not use your information for marketing purposes. See PRIVACY POLICY
Dots
Free download

Free Insolvency Report

Claim Your Free Business Review

Simply search your Limited Company Name or Company Number

Next Steps

We provide free confidential advice with absolutely no obligation.
Our expert and non-judgemental team are ready to assist directors and stakeholders today.