2 min read
Definition
In a pre-pack administration, the sale of the insolvent company’s business and assets is negotiated before administrators are appointed, then executed immediately on appointment — often to existing management or a connected buyer, subject to independent review.
In plain terms
The deal is lined up in advance so trading continues seamlessly, preserving customers, staff and value. Because buyers are often connected, the process is closely scrutinised.
Why it matters for your company
Pre-packs can rescue a viable business fast, but connected-party sales require an independent evaluator’s report to protect creditors. Take specialist advice. See administration and phoenix company.
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