• Licenced Business Rescue Experts
  • Helping Directors in Debt
  • Same Day Advice

For free expert advice, send us a message and we’ll be in touch

Pre-Pack Administration

A pre-pack administration is when the business is sold by the administrator to management or a third-party purchaser either immediately upon their appointment or within a few days.

It is a useful tool when the type of business means that ongoing marketing by an administrator may damage its goodwill and value, with the pre-pack administration process providing a discrete and swift transfer of ownership, allowing the company to enjoy a new start. Here at the Insolvency Experts, we are experienced in guiding clients through the range of pre-pack administration rules that allow them to utilise this financial solution.

The wealth of legal and financial qualification across our team ensures that we operate within all of the required legal guidelines while providing cost-effective and timely guidance. Our personable financial experts ensure you are given helpful and relatable advice that keeps you up-to-speed throughout the process. We offer peace of mind at a stressful moment through working to find a financial outcome that satisfies creditors, the government, shareholders and directors whenever possible.

We understand that many companies find themselves insolvent through no fault of the directors, so if circumstances have brought on financial difficulties, we help our clients to find a workable financial solution. If you want to discuss our available insolvency practitioners Bolton services, get in touch with us today. We act on behalf of our clients to find the best possible solution to their current financial difficulties.

Our expert financial staff are available to discuss options surrounding Liquidation, Administration and a range of other services we provide, with this advice offered through a free initial consultation. Additionally, if you are seeking an estimate on the price of a Liquidation process for your company, you can make use of our free quote calculator.

Go to Section:

4 Key Questions on Pre-Pack Administration

What are the advantages of pre-pack administration?

One of the main advantages of this administration is the permanency of the “business”, as the business is protected by the courts, giving the administrator the power to sell the business and all of its assets. It writes off the debts of the existing company with no interruption to the trading business.

There are several benefits to the pre-pack administration process, including the meeting of contractual obligations as the newco will often carry on trading as it did before the administration. Jobs are often saved as a result and as it is sold as a going concern, it can result in greater returns for creditors.

If the newco turns out to be the previous directors of the business then it may often generate negative publicity, as it is often frowned upon, despite it being a legal arrangement. It’s important to remember that other options may include liquidation, whereby employees may lose jobs and the business does not continue trading, so any type of administration that allows the company to continue has its benefits.

Call our friendly experts on 0300 303 8284

By quickly taking back control, we can help you solve the problems that your business has.

How does the pre-pack administration process begin?

During a pre-pack administration, we would seek a valuation of the assets and negotiate a sale prior to the appointment of the administrator. Upon being appointed as administrators, the business would be sold to the existing directors as a going concern. This option often allows the business to continue trading without too much disruption, and importantly, usually without the loss of trade or jobs. We can guide on how this process could be carried out for your company with all of the relevant pre-pack administration rules adhered to.

What are the key pre-pack administration rules and requirements?

As you would expect, there are several requirements and conditions which need to be met before a pre-pack administration process could be carried out. As insolvency practitioners, we must be able to demonstrate that the pre-pack administration was the right thing to do, and we must report this to the official body.

Within this report, we must prove that we assessed every other option, but that the pre-pack administration offered the best return for creditors. This is done to ensure that the process was done for the right reasons, in order to remove any fears that it was unethical.

How do I select the right expert for the pre-pack administration process?

You’ll want to select an Insolvency Practitioner who can expertly advise you on exactly how to approach your pre-pack administration process. Here at The Insolvency Experts, we are experienced in pre-pack administrations and can advise you on which course is right for your business – contact us today if you believe this may be appropriate for you. For more information, email us on enquiries@theinsolvencyexperts.co.uk or call us on 0300 303 8284.

Company Liquidation Quote

How much will it cost to liquidate your business?

Try our calculator to find out…

Launch Calculator

How we’ve helped others through
rescuing their business

At the Insolvency Experts our sole aim is to rescue, recover and renew businesses that are in difficulty. We are specialists in corporate turnaround and help business overcome cash flow difficulties and other financial problems. Our experts:

  • Help you to take the appropriate steps to meet any impending deadlines
  • Have a long track record in helping companies in similar positions
  • Can help you take the best course of action, often using your assets to help you avoid additional cost

Get a Quote or Get Free Advice

Creditors’ Guide To Fees

How much will it cost to liquidate your business?

Download our free quide to find out…


Why Choose Us?

We understand you have already made every effort to avoid insolvency and day to day life is stressful at the moment. We can start immediately and quickly work with you through the process.

We see many examples of great businesses that have fallen on hard times or suffered through no fault of their own.

We understand that the company directors and shareholders have already tried valiantly to carry on trading, but circumstances dictate that this is no longer possible.

  • We Remove Stress
  • We Act Quickly
  • We Are Cost Effective
  • We Are Formally Accredited
  • We Are CVL Experts
  • We Act Confidentially

Get Free Confidential Advice Now

Get Free, Confidential Advice

0300 303 8284

Request a Callback

For instant, impartial advice request a callback that’s convenient to you

Request a Callback

Request a Meeting

We come to you…

Nationwide Office Visit

We can come to your office at a date and time that’s convenient to you

Request a Meeting

Latest News

Our Business Rescue team help save 19 jobs

Our business rescue team were recently appointed as administrators for a Trafford-based business, following a difficult period of trading which rendered the

Read more

How learning from failure can be the making of a business

In a recently published article in Business Insider, Insolvency Experts Partner Jason Elliott looks at how learning from failure can be the

Read more

Business Rescue team advise a number of struggling care home businesses

Our business rescue team have successfully advised a number of struggling North West based care home business resulting in positive outcomes for

Read more