When a business goes into administration, and it assets are immediately sold to another party, the term used to describe the process is Pre Pack Administration. Pre Pack Administration is designed to allow businesses to continue trading, under new management, after having achieved as much as possible for the former company’s assets, to eliminate the [...]

When a business goes into administration, and it assets are immediately sold to another party, the term used to describe the process is Pre Pack Administration. Pre Pack Administration is designed to allow businesses to continue trading, under new management, after having achieved as much as possible for the former company’s assets, to eliminate the [...]

So, what exactly is pre pack administration? Put simply, it involves selling an insolvent business prior to it being entered in to administration. The insolvent company can be sold to anyone, but the buyers are often the directors of the company itself. This may initially seem like a strange transaction, but bear in mind that [...]