Tel: 01257 257030

Pre Pack Administration

Download: Pre Pack Administration Guide

Pre-Pack Administration FAQ

Pre Pack Benefits

    • Pre-pack administration can result in a quick and relatively smooth transfer of a business.
    • Pre-packs can protect the goodwill of the company as they have a minimal impact on customer confidence that any insolvency proceedings inevitably cause.
    • Pre-packs can save more jobs than in a normal administration.
    • Because the process is relatively quick compared to a normal administration, the costs of the administration process may be reduced, which  may result in a better return for creditors

Pre Pack More Info

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Pre-Packaged Administration or ‘pre-pack’ is where a company is put into administration and its business and/or assets are immediately sold under a sale agreement which is arranged before an administrator is appointed.

Pre-Packaged Administration can be used when a company is failing due to serious financial difficulties such as historic tax and trade debts, unfavourable lease agreements or problem factoring agreements.

If you believe that without its liabilities your company has an underlying value then a pre-pack may be for you.

Any proposed Administrator must be a licensed Insolvency Practitioner and has to achieve certain requirements in order to make the process viable.  The first step in establishing whether a pre-pack is an option available to you is to contact us to discuss the value of the assets of your company.  You may then be able to buy back the assets from the company and start trading under a new company without the burden of the historic debts.

If you decide to go ahead with a pre-pack then we will file the necessary documentation and depending on the security creditors hold over your company, an administration order may be granted on the same day giving you full legal protection against all company creditors.


Pre Pack Case Studies

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Company Directors approached Focus Insolvency Group to look at the company position following creditor pressure, with debts in excess of £600,000.

After analysing the trading position it was clear that a CVA wasn’t viable as the company was only just breaking even.

Accordingly, Focus Insolvency Group arranged for independent Surveyors to provide a valuation of the company assets on a going concern and break up basis {by Auction}. The directors expressed an interest in buying the company assets as they fancied giving the business another go with smaller premises and a smaller workforce.

The directors were very worried about the recent bad press concerning pre-packaged administrations however Focus Insolvency Group have a wealth of experience in handling such cases and the main route to a successful pre-pack is to get professional advice from the start from a Licensed Insolvency Practitioner.

In such cases Focus Insolvency Group’s Insolvency Practitioner will meet with the directors personally to ensure it is the best advice and make certain the process is implemented correctly right from the outset.

The company entered Administration and all the assets were sold to the former directors for an agreed price of £40,000.  The remaining company debt was written off and all company liabilities including the leasehold premises and employees claims were dealt with by the Administrator and the former directors succeeded with their new company plans.


Pre Pack Testimonials

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“Great Service. I Feel like I have moved on and that’s a great peace of mind” – Miss Wood

“Kept me up to date with what was happening and explained everything” – Mr & Mrs Foy

“We have worked with a number of IP’s over the years, but have never found another company who offers the same level of care, support and professionalism. Focus Insolvency are always on hand to offer advice and guidance to our clients. I would recommend them wholeheartedly” –Accountant, Preston


Take Next Step

    • Call us direct on 01257 257030  & ask to speak to a specialist in Pre-Pack Administration. You can see our biographies here and ask for someone direct if you like
    • We will discuss the company position: current trading, cash flow, assets, liabilities, creditor action and about your employees in clear terms you can understand
    • We will arrange a meeting to put a suitable measure in place to protect the company and your position
    • We will work out the best way to proceed taking all matters into consideration
    • You will be under the guidance of Licensed Insolvency Specialists, who act as officers of the court and trusted Professionals
    • If you just prefer some generic advice then sign up to our newsletter here and we will send you useful information and guidance on Insolvency and finance options without having to speak to anyone until you are ready.

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