View Tim Corfield explaining
A Pre-Pack Administration or 'Pre-Pack' is a procedure to deal with the closure of your company if the company is insolvent. In other words the value of the assets of the company are not enough to be able to clear all of the debts.
A Pre-Pack Administration is really exactly the same procedure as for an Administration. The only difference is that there is a purchaser for the company and all the terms of the sale have been agreed so that the sale can be completed as soon as the Administrator has been appointed.
This procedure is to be used (rather than a Creditors' Voluntary Liquidation or Company Voluntary Arrangement) if there is part or all of the business that can be sold or is worth trying to salvage. Of course, this is something that we will carefully review with you to make sure the right process is chosen to deal with your company.
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