A Pre-Pack Administration is a sale of a business at the start of an Administration process. This is generally arranged beforehand, with the sale of the business taking place on or shortly after the appointment of the Administrator.
In the right circumstances this can produce the best results for the stakeholders, creditors and shareholders. However, it is important to ensure that these transactions take place in a transparent manner. There are strict rules and regulations that must be adhered to.
For alternative options regarding corporate restructuring, please see our Corporate Insolvency and Restructuring pages.