What Is A Pre-Pack Administration and Why Do You Need One Now?
A pre-pack administration is a formal insolvency procedure which allows company directors to transfer protected assets to another company should your business become insolvent. However, companies do not benefit from the privileges of the pre-pack after a winding up order has been issued so you should sign up for one at the first indication of trouble if not before.
The administration pre-packs are a powerful solution for businesses to continue trading if the current business runs into financial difficulties. The main benefit is the company and its assets are protected by the court, which allows the administrator to easily dispose of debts, unwanted contracts and in some circumstances, employees (except where there is a TUPE).